Bakers ton Company 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: 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 33.000 machine- hours and incur $231,000 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $315,000. Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and $26,000 indirect). The following employee costs were incurred: direct labor, $377,000: indirect labor, $96,000; and administrative salaries, $172,000. Selling costs, $147,000. Factory utility costs, $10,000. Depreciation for the year was $127,000 of which $120,000 is related to factory operations and $7,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machine- hours. Sales for the year totaled SI, 253,000. Required: Prepare a schedule of cost of goods manufactured. continued Was the overhead under applied or over applied? By how much