1 Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year Beginning Ending Raw naterials Work in process Finished Goods $27,300 9,300 $ 62,300 $ 77,300 03:29:52 The company applies overhead to jobs uslng a 30o.. ate Da oRO. At the Deg g rthe machine-hours an manufacturing verhead cost. The following transactions were recorded for the year Raw materials were purchased. $315,.300 Raw materlals were requisitioned for use In productlon, $307,300 ($280,700 direct and $26,600 Indirect). ing employee costs were incurred: direct labor, $377,300; indirect labor, $96.300, and administrative salaries, $172 300 Selling costs, $147300. Factory utility costs, $10,300. 00 of which $127000 is related to factory operations and $18,000 is related to selling bep d e actvities Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,060 machiine-hours. .Sales for the year totaled $1,265,000. Required: a Prepare a schedule of cost b. Was the overhead underapplied or overapplied? By how much? c. Prepare an income statement for the year. The company closes any underapplied fgoods manufactured. overapplied overhead to Cost of Goods Sold. Complete this auestion by entering your answers in the table below