Applying Overhead; Underapplied or Overapplied Overhead: Income Statement [L04-2, LO44, LO4-5) Durham Company uses a job-order costing system. The following transactions took place last year: a. Raw materials requisitioned for use in production, $45,000 (80% direct and 20% indirect b. Factory utility costs incurred, $15,100. c. Depreciation recorded on plant and equipment, $29,000. Three-fourths of the depreciation relates to factory equlpmen d. Costs for salaries and wages were incurred as follows: t, and the remainder relates to selling and administrative equipmeet Direct labor Indirect labor Sales S 45,000 S 18,500 10,500 s 30,000 e. Insurance costs incurred, $4,000 (80% relates to factory operations, and 20% relates to selling and administrative activties). f. Miscellaneous selling and administrative expenses incurred, $18,500 g. Manufacturing overhead was applied to production. The company applies overhead on the basis of 130% of direct labor cost. h. Goods that cost $135,000 to manufacture according to their job cost sheets were transterred to the finished goods warehouse. . Goods that had cost $125,000 to manufacture according to their job cost sheets were sold for $210,000. Required: 1. Determine the underapplied or overapplied overhead for the year acBook A