Durham Company uses a job-order costing system. The following transactions took place last year: a) Raw material requistioned for use in production, $40,000 (80% direct and 20% indirect), b) Factory utilitiy cost incurred, $14,6000, c) Depreciation recorded on plant equipment, and the remainer relates to selling and administrative equipment, d) cpsts for salaries and wages were incurred as follows: direct labor ($40,000), Indirect labor ($18,000), sales commissions ($10,000), and administrative salaries ($25,000). e) insurance cost incurred, $3,000 (80% relates to factory operations and 20% relates to selling and administrative activities), f) miscellaneous selling and administrative expenses incurred $18,000, g) Manufacturing overhead was applied to production. The company applies overhead on the basis of 150% of direct labor, h) Goods that cost $130,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse, i) Goods that cost $120,000 to manufacture according to their job cost sheets were sold for $200,000. Determine the underapplied or over applied overhead for the year. Prepare and income statement for the year (No calculations are required to determine the cost of goods sold before any adjustments for underapplied or overapplied overhead)