Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory baiances were as follows: The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,000 machine-hours and incur $156,600 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw matenais were purchased on account $205,000 b. Raw materlals were requisitioned for use in production: $195,000 (80\% direct and 20% indirect) c. The following costs were incurred for employee services c. The following costs were incurred for employee services: d. Heat, power, and water costs were incurred in the factory; $43,000 e. Prepaid insurance expired during the year: $11,000(90% relates to factory operations, and 10% relates to seling and administrative activities) f. Advertising costs were incurred, $51,000 9. Depreciation was recorded for the year $61,500 (85\% relates to foctoryjoperations, and 15% relates to selling and adiministrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the yeat. 1. Goods that cost $492,000 to manufacture occording to their job cost sheets were transferred to the finished goods warenouse. 1. Sales for the year totalied $735,000 and were all on account. The total cost to manufocture these goods according to ther job cont sheets was $485,000. transaction/event, select "No journ transactions given above. (Do not round intermediate calculations. If no entry is required for (Nelect "No journal entry required" in the first account field.). Journal entry worksheet to these T-accounts (don't forget to enter the opening balances in your inventory accounts), Compute an ending balance in each account. 3-a. Is manufacturing overhead underapplied or overapplied for the year? 3-a. Is manufacturing overhead underapplied or overapplied for the year? Overapplied overhead Underapplied overhead 3.b. Prepare a journal entry to properly dispose of any balance in the Marwfocturing Overhead account (Round your percentages and final answers to 2 decimal places. If no entry is required for a transiction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits. 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.)