Durham Company uses a job-order costing system. The following transactions took place last year:

a.	Raw materials requisitioned for use in production, $43,000 (75% direct and 25% indirect).
b.	Factory utility costs incurred, $14,900.
c.	Depreciation recorded on plant and equipment, $28,600. Three-fourths of the depreciation relates to factory equipment, and the remainder relates to selling and administrative equipment.
d.	Costs for salaries and wages were incurred as follows

Direct labor	$	43,000
Indirect labor	$	18,300
Sales commissions	$	10,300
Administrative salaries	$	28,000

e.	Insurance costs incurred, $3,600 (75% relates to factory operations, and 25% relates to selling and administrative activities).
f.	Miscellaneous selling and administrative expenses incurred, $18,300.
g.	Manufacturing overhead was applied to production. The company applies overhead on the basis of 150% of direct labor cost.
h.	Goods that cost $133,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
i.	Goods that had cost $123,000 to manufacture according to their job cost sheets were sold for $206,000.

Required:
2.	1. Determine the under applied or over applied overhead for the year =?? A Prepare an income statement for the year. (Hint: No calculations are required to determine the cost of goods sold before any adjustment for under applied or over applied overhead.)