Style uses a job order costing system to apply manufacturing overhead on the basis of direct labour cost. At the start of 2018, the company estimated that during the year, it would incur $70,000 in overhead costs and will pay $140,000 in direct labour costs. During the year, the following transactions occurred: a) Purchased $180,000 of direct materials on account b) Purchased $5,000 of supplies on account. (The supplies consisted of glue and cleaning supplies.) c) Requisitioned $170,000 of direct materials and $4,500 of supplies for use in production d) Advertised on local television: $5,000 (100% fixed) e) Rent: $12,000. 40% of the space related to sales offices, 60% was a shop used in production of roofing materials (100% fixed) f) Depreciation: $25,000. 70% relates to roofing equipment, 30% relates to office equipment. (50% variable, 50% fixed) g) Insurance expired: $15,000. 90% relates to the factory, the remainder relates to insurance on the office equipment. (100% fixed) h) Goods costing $375,000 were completed. (75% variable, 25% fixed) i) The company had sales on account of $800,000. According to cost data, the jobs cost $350,000. (75% variable, 25% fixed) j) Incurred employee costs: a. Direct labour $150,000 (95% variable, 5% fixed) b. Indirect labour 40,000 (95% variable, 5% fixed) c. Administrative salaries 190,000 (95% variable, 5% fixed) d. Sales salaries 30,000 (95% variable, 5% fixed) e. Sales commissions 90,000 (95% variable, 5% fixed) k) Manufacturing overhead costs were applied to production 1) Our COGS is 75% variable, 25% fixed Required: a.) For items above, record the journal entries. Unless otherwise noted, assume all transactions were on account. b.) Was overhead overapplied or underapplied for the period? By how much? c.) Record a journal entry to close overhead to cost of goods sold. d.) Based on the information above, prepare an income statement for the company - assume a 20% tax rate. e.) Based on the information above, prepare a contribution method income statement for the company -assume a 20% tax rate.