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: Raw materials Beginning Balance $ 14,200 Ending Balance $ 22,200 Work in process $ 27,200 $ 9,200 Finished Goods $ 62,200 $ 77,200 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,200 machine-hours and incur $245,680 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $315,200. Raw materials were requisitioned for use in production, $307,200 ($280,800 direct and $26,400 indirect). The following employee costs were incurred: direct labor, $377,200; indirect labor, $96,200; and administrative salaries, $172,200. Selling costs, $147,200. Factory utility costs, $10,200. Depreciation for the year was $139,000 of which $120,400 is related to factory operations and $18,600 is related to selling. general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,040 machine-hours. Sales for the year totaled $1,261,000. Required: a. Prepare a schedule of cost of goods manufactured. b. Was the overhead underapplied or overapplied? By how much? Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Required B Required C Prepare a schedule of cost of goods manufactured. Baab Corporation Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Total Raw materials used in production Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured Requirat A Required B > by entering your answers in the table below. Required A Required B Required C Was the overhead underapplied or overapplied? By how much? Required A Required C > Required A Required B Required C Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Baab Corporation Income Statement Selling and administrative expenses