Response to the following problem:
Almeda Products, Inc., uses a job-order costing system. During the year, the following transactions were completed:
a. Raw materials were issued from the storeroom for use in production, $181,900 (80% direct and 20% indirect).
b. Employee salaries and wages were accrued as follows: direct labor, $198,800; indirect labor, $82,300; and selling and administrative salaries, $89,400.
c. Utility costs were incurred in the factory, $66,200.
d. Advertising costs were incurred, $98,400.
e. Insurance costs, $21,300 (90% related to factory operations, and 10% related to selling and administrative activities).
f. Depreciation was recorded, $180,100 (85% related to factory assets, and 15% related to selling and administrative assets).
g. Manufacturing overhead was applied to jobs at the rate of 170% of direct labor cost.
h. Goods that cost $701,200 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
i. Sales for the year totaled $1,390,000.
The total cost to manufacture these goods according to their job cost sheets was $718,500
Determine the underapplied or overapplied overhead for the year. (Omit the "tiny_mce_markerquot; sign in your response.)
Prepare an income statement for the year. (Hint: No calculations are required to determine the cost ofgoods sold before any adjustment for underapplied or overapplied overhead.) (Input all amounts as positive values. )