Prepare an Income statement

Computation of the predetermined overhead rate
Estimated manufacturing overhead cost	$450,000
Estimated total amount of the allocation base	85,000	machine-hours
Predetermined overhead rate	$5.29	per machine-hour
Computation of underapplied or overapplied manufacturing overhead
Actual manufacturing overhead cost	$ 310,000
Manufacturing overhead cost applied to Work in Process during the year:
Predetermined overhead rate	$5.29	per machine-hour
Actual total amount of the allocation base	74,000	machine-hours
Manufacturing overhead applied	$ 391,765
Underapplied (overapplied) manufacturing overhead	$ (81,765)	Underapplied