Ravsten Company uses a job -order costing system. The company applies overhead cost to jobs on the basis of machine -hours. For the current year, the company estimated that it would work 43,000 machine -hours and incur $197,800 in manufacturing overhead cost. The following transactions occurred during the year: a. Raw materials requisitioned for use in production, $241,000 (8O% direct and 20% indirect). b. The following costs were incurred for employee services: Direct labor $ 167,000 Indirect labor $ 25,000 Sales commissions $ 17,000 Administrative salaries $ 32,000 c. Heat, power, and water costs incurred in the factory, $52,000. d. Insurance costs, $17,000 (90% relates to factory operations, and 10% relates to selling and administrative activities). e. Advertising costs incurred, $57,000. f. Depreciation recorded for the year, $67,000 (85% relates to factory operations, and 15% relates to selling and administrative activities). g. The company used 47,000 machine -hours during the year. h. Goods that cost $487,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. i. Sales for the year totaled $714,000. The total cost to manufacture these goods according to their job cost sheets was $482,000. Required: 1. Determine the underapplied or overapplied overhead for the year. (Round your Intermediate calculations to two decimal places.) Overhead overapplied Prepare an income statement for the year. (Hint: No calculations are required to determine the cost of 2. goods sold before any adjustment for underapplied or overapplied overhead.) (Round your intermediate calculations to two decimal places.) Ravsten Company Income Statement For the Year Ended December 31 Ravsten Company uses a job -order costing system. The company applies overhead cost to jobs on the basis of machine -hours. For the current year, the company estimated that it would work 43,000 machine -hours and incur $197,800 in manufacturing overhead cost. The following transactions occurred during the year: a. Raw materials requisitioned for use in production, $241,000 (8O% direct and 20% indirect). b. The following costs were incurred for employee services: Direct labor $ 167,000 Indirect labor $ 25,000 Sales commissions $ 17,000 Administrative salaries $ 32,000 c. Heat, power, and water costs incurred in the factory, $52,000. d. Insurance costs, $17,000 (90% relates to factory operations, and 10% relates to selling and administrative activities). e. Advertising costs incurred, $57,000. f. Depreciation recorded for the year, $67,000 (85% relates to factory operations, and 15% relates to selling and administrative activities). g. The company used 47,000 machine -hours during the year. h. Goods that cost $487,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. i. Sales for the year totaled $714,000. The total cost to manufacture these goods according to their job cost sheets was $482,000. Required: 1. Determine the underapplied or overapplied overhead for the year. (Round your Intermediate calculations to two decimal places.) Overhead overapplied Prepare an income statement for the year. (Hint: No calculations are required to determine the cost of 2. goods sold before any adjustment for underapplied or overapplied overhead.) (Round your intermediate calculations to two decimal places.) Ravsten Company Income Statement For the Year Ended December 31