At the end of the year,overhead applied was $35,000,000.Actual overhead was $35,800,000.Closing over/under applied overhead into cost of goods sold would cause net income to

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Overhead applied = $35,000,000
Actual overhead = $35,800,000

Over/under applied overhead = Actual overhead - Overhead applied
= $35,800,000 - $35,000,000
= $800,000 (overapplied)

Closing overapplied overhead into cost of goods sold would decrease net income by the same amount. This is because overapplied overhead means that more overhead was applied than was actually incurred. If this overapplied amount is closed into cost of goods sold, it would increase the cost of goods sold and decrease net income. Therefore, the net income would decrease by $800,000.

At the End of the Year,overhead Applied Was $35,000,000