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: Beginning Balance Ending Balance Raw materials $ 11,800 $ 15,800 Work in process $ 32,300 $ 14,700 Finished goods $ 103,000 $ 120,000 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, $413,000. Raw materials were requisitioned for use in production, $409,000 ($377,000 direct and $32,000 indirect). The following employee costs were incurred: direct labor, $331,000; indirect labor, $72,000; and administrative salaries, $160,000. Selling costs, $111,000. Factory utility costs, $20,000. Depreciation for the year was $124,000 of which $115,000 is related to factory operations and $9,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 14,500 machine-hours. Sales for the year totaled $1,290,000. Prepare a schedule of cost of goods manufactured in good form. Was the overhead underapplied or overapplied? By how much? (Do not round predetermined overhead rate. Input the amount as a positive value.) Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold.