Income Statement; Cost of Goods Sold Statement; Factory Overhead Analysis. On October 1, the accountant of Columbus Company prepared a trial balance from which the following accounts were extracted: LO1 Dr Cr Finished Goods (2,800units). $ 9,800 Work in Process (1,200units). 4,070 Materials andSupplies. 40,700 Buildings. 48,000 Accumulated Depreciation—Buildings. $ 6,000 Machinery andEquipment. 96,000 Accumulated Depreciation—Machinery and Equipment. 37,500 OfficeEquipment. 3,200 Accumulated Depreciation—OfficeEquipment. 1,000 AccruedPayroll. 650 The following transactions and other data have been made available for October:

(a) Purchased materials and supplies costing $24,800.

(b) Paid factory overhead of $20,100.

(c) Paid marketing expenses of $25,050.

(d) Paid administrative expenses were $19,700.

(e) Requisitions for direct materials were $29,800 and indirect materials were $3,950.

(f) Annual depreciation for building was 5% (75% to manufacturing, 15% to marketing, and 10% to administra¬ tive expenses); for machinery and equipment, 10%; and for office equipment, 15% (40% to marketing and 60% to administrative expenses).

(g) Sales (20,700 units) totaled $144,900.

(h) Sales returns and allowances totaled $1,300.

(i) Cash payments for accounts payable were $75,000 and for payroll were $21,800.

(j) Distribution of payroll earned was $18,600 for direct labor and $4,400 for indirect labor.

(k) Cash collected from customers totaled $116,900.

(l) Applied factory overhead based on machine hours used was $27,450.

(m) 20,400 units were transferred to finished goods.

(n) Cost of goods sold is calculated on the fifo basis.

(o) Work in process inventory on October 31 totaled $4,440.

Required:

(1) Prepare in detail the cost of goods sold section of the income statement for October, assuming that over- or underapplied factory overhead is deferred until the end of the calendar year.

(2) Prepare the income statement for October.

(3) Calculate the amount of over- or underapplied factory overhead for October.