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 29,000 machine-hours and incur $143,550 in manufacturing overhead cost. The following transactions occurred during the year:

a.	Raw materials requisitioned for use in production, $303,000 (70% direct and 30% indirect).
b.	The following costs were incurred for employee services:

Direct labor	$	174,000
Indirect labor	$	32,000
Sales commissions	$	24,000
Administrative salaries	$	39,000

c.	Heat, power, and water costs incurred in the factory, $51,000.
d.	Insurance costs, $24,000 (80% relates to factory operations, and 20% relates to selling and administrative activities).
e.	Advertising costs incurred, $64,000.
f.	Depreciation recorded for the year, $74,000 (75% relates to factory operations, and 25% relates to selling and administrative activities).
g.	The company used 54,000 machine-hours during the year.
h.	Goods that cost $494,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
i.	Sales for the year totaled $728,000. The total cost to manufacture these goods according to their job cost sheets was $489,000.

Required:
1.	Determine the underapplied or overapplied overhead for the year. (Round your intermediate calculations to two decimal places.) - Apparently the answer is not 4.95?
	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.) (Round your intermediate calculations to two decimal places.) SALES ? COST OF GOODS SOLD ? GROSS MARGIN ? SELLING AND ADMIN EXPENSES ? NET OPERATING INCOME ?