What adjustment is made for underapplied overhead on the schedule of cost of goods sold?

Discuss the following questions:
1.What adjustment is made for underapplied overhead on the schedule of cost of goods sold? What is adjustment made for overapplied overhead on the cost of goods sold?
2.. If overhead rates are based on direct labor and automation replaces direct labor will the overhead rates increase or decrease? Why?
Apa format and 2 citations
Teacher note:
FYI – The overhead rate is the total of indirect costs (known as overhead) for a specific reporting period, divided by an allocation measure. The cost of overhead can be comprised of either actual costs or budgeted costs. There are a wide range of possible allocation measures, such as direct labor hours, machine time, and square footage used. A company uses the overhead rate to allocate its indirect costs of production to products