Durham Company uses a job-ordering cost system. The following transaction took place last year: a. Raw materials requisitioned for use in production , $53,000( 75% direct and 25% indirect) b. Factory utility costs incurred, $15,900 c. Depreciation recorded on plant and equipment, $30,600. Three-fourths of the depreciation relates to factor equipment, and remainder relates to selling and administrative equipment d. Costs for salaries and wages were incurred as follows: Direct labor...........$53,000 Indirect Labor.......$19,300 Sales commissions.....$11,300 Administrative salaries.....$38,000 e. Insurance costs incurred, $5,600 (75% relates to factory operations, and 25% relates to selling and administrative activities f. Miscellaneous selling and administrative expenses incurred, $19,300 g. Manufacturing overhead was applied to production. The company applies overhead on the basis of 130% of direct labor cost. h. Goods that cost $143,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse i. Goods that had cost $133,000 to manufacture according to their job cost sheets were sold for $226,000 Required: 1. Determine the underapplied or overapplied overhead for the year 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). Durham Company Income Statement For the Year Ended December 31