Bakerston 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

$17,300$ machine$-$hours and incur $$259,500$ in manufacturing overhead cost. The

following transactions were recorded for the year:

Raw materials were purchased, $$410,000.$

Raw materials were requisitioned for use in production, $$405,900($$$377,000$ direct

and $$28,900$ indirect$).$

The following employee costs were incurred: direct labor, $$331,000$; indirect labor,

$$76,000$; and administrative salaries, $$151,000.$

Selling costs, $$113,000.$

Factory utility costs, $$21,000.$

Depreciation for the year was $$129,000$ of which $$111,000$ is related to factory

operations and $$18,000$ is related to selling. general, and administrative activities.

Manufacturing overhead was applied to jobs. The actual level of activity for the year

was $14,300$ machine$-$hours.

Sales for the year totaled $$1,292,000.$

b$.$Was the overhead underapplied or overapplied? By how much? $($Do not round

predetermined overhead rate. Input the amount as a positive value. Omit the $"$$$"$

sign in your response.$)$

Manufacturing overhead

$($Click to select $$

$

c$.$Prepare an income statement for the yoar. The company closes any underapplied or

overapplied overhead to Cost of Goods Sold. $($Input all amounts as positive values.

Omit the $"$$$"$ sign in your response.$)$