SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

$1)$ Bakerston Company 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:

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 $33,000$ machine$-$hours and incur $\backslash (\backslash$$ $231,000\backslash )$ in manufacturing overhead cost. The following transactions were recorded for the year:

$-$ Raw materials were purchased, $\backslash$$$315,000.$

$-$ Raw materials were requisitioned for use in production, $\backslash (\backslash$$ $307,000\backslash )(\backslash (\backslash$$ $281,000\backslash )$ direct and $\backslash$$$26,000$ indirect$).$

$-$ The following employee costs were incurred: direct labour, $\backslash (\backslash$$ $377,000\backslash )$; indirect labour, $\backslash (\backslash$$ $96,000\backslash )$; and administrative salaries, $\backslash (\backslash$$ $172,000\backslash ).$

$-$ Selling costs, $\backslash (\backslash$$ $147,000\backslash ).$

$-$ Factory utility costs, $\backslash (\backslash$$ $10,000\backslash ).$

$-$ Depreciation for the year was $\backslash (\backslash$$ $127,000\backslash )$ of which $\backslash (\backslash$$ $120,000\backslash )$ is related to factory operations and $\backslash (\backslash$$ $7,000\backslash )$ is related to selling and administrative activities.

$-$ Manufacturing overhead was applied to jobs. The actual level of activity for the year was $34,000$ machine$-$hours.

$-$ Sales for the year totalled $\backslash (\backslash$$ $1,253,000\backslash ).$

Required:

a$.$ Prepare a schedule of cost of goods manufactured in good form.

b$.$ Was the overhead underapplied or overapplied and by how much?

c$.$ Prepare an income statement for the year in good form.

The company closes any underapplied or overapplied overhead to Cost of Goods Sold.