Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures

Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $336,000 of manufacturing overhead for an estimated allocation base of 1,050 direct labor-hours. The following transactions took place during the year (all purchases and services were acquired on account):

  a.Raw materials purchased for use in production, $225,000.

  b. Raw materials requisitioned for use in production (all direct materials), $210,000.

  c. Utility bills were incurred, $58,000 (95% related to factory operations, and the remainder related to selling and administrative activities).

  d.Salary and wage costs were incurred:

  Direct labor (1,125 hours)$255,000   Indirect labor$95,000   Selling and administrative salaries$135,000

e.Maintenance costs were incurred in the factory, $59,000.

f.Advertising costs were incurred, $141,000.

g.Depreciation was recorded for the year, $89,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment).

h.Rental cost incurred on buildings, $114,000 (75% related to factory operations, and the remainder related to selling and administrative facilities).

i.Manufacturing overhead cost was applied to jobs, $ ?.

j.Cost of goods manufactured for the year, $820,000.

k.Sales for the year (all on account) totaled $1,450,000. These goods cost $850,000 according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were:

 Raw materials$35,000   Work in process$26,000   Finished Goods$65,000