Crimson Tide Company uses a job-order costing system. At Crimson Tide, overhead costs are applied to jobs on the basis of machine-hours. For the current year, Crimson Tide estimated that its machines would work for a total of 41,000 machine-hours. Tide also estimated for the current year that it would incur $184,500 in manufacturing overhead The following transactions occurred during the year: a. Raw materials requisitioned for use in production, $195,000 (70% direct and 30% indirect). b. The following costs were incurred for employee services: S 165.000 Direct labor ndirect lalbor 15 000 S 30,000 issions Administrative salaries c. Total insurance costs were S15,000 Note: Of the total insurance cost, 80% relates to factory operations, and 20% relates to selling and administrative activities. d. In the factory only, heat, power, and water costs incurred Total depreciation recorded for the year was $65,000 Note: Of the total depreciation recorded 75% relates to factory operations, and 25% relates to selling and administrative activities. the factory totalled $47.000. g. According to their job cost sheets, goods that cost $485,000 to manufacture were transferred to the finished goods warehouse. h. Sales for the year totaled $710,000. The total cost to manufacture these goods according i. The company actually used 45,000 machine-hours during the year their job cost sheets was $480,000 Required: 1. Determine the underapplied or overapplied overhead for the year. (Round predetermined overhead rate 2 decimal places.). 2. Prepare an income statement for the year. (Hint: No calculations are required to determine the cost of goods sold before any adjustment for underapplied or overapplied overhead.) (Round predetermined overhead rate to 2 decimal places.) Crimson Tide Company Income Statement For the Year Ended December 31