Sallie Company applies factory overhead on the basis of a rate per direct labor-hour. The company provides you with the following data for the month of May 20X1. Selected inventories have different have the following balances: May 1 May 31 Work in process $78,000 $85,000 Finished goods 81,000 60,000 Prime costs for the month were: Direct Material used 48,000 Direct labor (45,000 actual labor-hours) 294,000 Sales have increased 20 percent over April's net sales of $500,000; as a result, gross margin for May is $190,000. Actual factory overhead for May is $58,100. Required: 1. Prepare a cost of goods manufactured statement showing only applied factory overhead. Also prepare an income statement. 2. Determine the factory overhead application rate. 3. Determine the amount of over-or under-applied overhead