Part Il-Worth 26 points Baba Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year Beginning BalanceEnding Balance $25.000 $34,000 $136,000 Raw materials.... $22,000 Work in process $52000 $121000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 40,000 machine-hours and incur $200,000 in manufacturing overhead cost. The following transactions were recorded for the year Raw materials were purchased, $412.000 Raw materials were requisitioned for use in production, $409,000$(362,000 direct and $47,000 The following employee costs were incurred: direct labor, $324,000; indirect labor. $57,000: and . Selling costs, $135,000 indirect). administrative salaries, $129.000. Factory utility costs, $22,000. Depreciation for the year was $102,000 of which $94.000 is related to factory operations and $8.000 s related to selling. general, and administrative activities Manufacturing overhead was applied to jobs. The actual level of activily for the year was 44,000 Sales for the year totaled $1,198,000 receive full credit!! a. Prepare a schedule of cost of goods manufactured in good form. b. Was the overhead underapplied or c. Prepare an income statement for the year in good form. The company closes a overoppleda 8y how much? axerapplied overhead to Cost of Goods Sold. ny unclerapplied or