Durham Company uses a job-order costing system. The following transactions took place last year s, Raw materials requisitioned for use in production. S40.000 (80% direct and 20% rdrect) b. Factory utility costs incurred, $14,600. c. Depreciation recorded on plant and equipment, $28.000. Three-fourths of the deprecistion relates to fsctory equipment, and the remainder relates to selling and administrative equipment d. Costs for salaries and wages were incurred as follows Direct labor Indirect labor Sales commissions Administrative salaries $40,000 $18,000 $10,000 $25,000 e Insurance costs incurred. $3,000 (80% relates to factory operations, and 20% relates to seling and administrative activities) f. Miscellaneous selling and administrative expenses incurred, $18,00o. g. Manufacturing overhead was applied to production. The company applies overhesd on the basis of 150% of direct labor cost. h. Goods that cost $130,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. i Goods that had cost $120.00D to manufacture according to their job cost sheets were sold for $200,000 Required: 1. Determine the underapplied or overapplied overhead for the year 2. Prepare an income statement for the year. (Hint. No calculaions are required to determine the cost of goods sold before any adjustment for underapplied or overapplied overhead.) Durham Company Income Statement For the Year Ended December 31