TB Problem Qu$.3-252$ Baab Corporation is a $...$Baab Corporation is a manufacturing firm that uses job$-$order costing. The company's inventory balances were as follows at the beginning and end of the year:Raw materialsWork in processFinished GoodsBeginning EndingBalance Balance$ $14,850$ $$22,850$$ $27,850$ $ $9,850$$ $62,850$ $$77,850$The company applies overhead to jobs using a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated that it would work $33,850$ machine$-$hours and incur $$294\mathrm{.}495$ in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $$315,850.$ Raw materials were requisitioned for use in production, $$307,850($$$280,150$ direct and $$27,700$ indirect$).$ The following employee costs were incurred: direct labor, $$377,850$; indirect labor, $$96,850$; and administrative salaries, $$172,850$ Selling costs, $$147,850$ Factory utility costs, $$10,850$ Depreciation for the year was $$178,000$ of which $$171,000$ is related to factory operations and $$7,000$ is related to $-$ selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was $34170$ machine$-$hours. Sales for the year totaled $$1,315,000.$Required:a$.$ Prepare a schedule of cost of goods manufacturedb. Was the overhead underapplied or overapplied? By how much?c$.$ Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold.