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 Balance Ending Balance $ 22,700 $ 9,700 Raw materials $ 14,700 Work in process Finished Goods $ 27,700 $ 62,700 $ 77,700 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 33,700 machine-hours and incur $283,080 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $315,700. Raw materials were requisitioned for use in production, $307,700 ($280,300 direct and $27,400 indirect). The following employee costs were incurred: direct labor, $377,700; indirect labor, $96,700; and administrative salaries, $172,700. Selling costs, $147,700. Factory utility costs, $10,700. Depreciation for the year was $169,000 of which $154,000 is related to factory operations and $15,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,140 machine-hours. Sales for the year totaled $1,300,000. Required: a. Prepare a schedule of cost of goods manufactured. b. Was the overhead underapplied or overapplied? By how much? c. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the table below. Required A Required B Required C Prepare a schedule of cost of goods manufactured. Baab Corporation Schedule of Cost of Goods Manufactured Beginning work in process inventory Direct materials: Beginning materials inventory Add: Purchases of raw materials Total raw materials available $ 14,700 315,700 330,400 Deduct: Ending raw materials inventory 22,700 Total Raw materials used in production 307,700 Deduct: Indirect materials included in manufacturing overhead 27,400 Direct materials used in production 280,300 Direct labor 377,700 Manufacturing overhead applied to work in process 286,776 Total manufacturing costs added to production 944,776 Total manufacturing costs to account for 944,776 Add: Ending work in process inventory Cost of goods manufactured 27,700 $ 917,076