4-21 Underapplied Overhead on Interim Income Statements The following data are available for ABC Company covering the month of January 19.4. Sales Cost of sales (per account) Factory overhead incurred Factory overhead applied Selling and administrative expenses $100,000 75,000 25,500 22,100 10,000 You are to prepare interim income statements for the month of January: 1. Assuming underapplied overhead is immediately chargeable to the period. 2. Assuming underapplied overhead as a cost that will benefit the rest of the year's production.