0 Required information The Foundational 15 [Algal [LOB-1, LOB-2. LOB-3, LOB-4] {The foiiowing information appiies to the questions dispiayed bellow} Bunnell Corporation is a manufacturer that uses joborder costing. On January1, the company's inventory balances were as follows: Raw materials 35 $1,589 work in process 5 13,266 Finished goods :5 46,566 The company applies overhead cost tojobs on the basis of direct laborhours. For the current year, the company's predetermined overhead rate of$1550 per direct laborhour was based on a cost formula that estimated $620,000 of total manufacturing overhead for an estimated activity level of 40,000 direct laborhours. The following transactions were recorded for the yea: a. Raw materials were purchased on account, $628,000. b. Raw materials used in production, $598,000. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $570,000; indirect labor, $150,000; selling and administrative salaries, $266,000. d. Incurred various selling and administrative expenses [e.g., advertising, sales travel costs, and nished goods warehousing}, $418,000. e. Incurred various manufacturing overhead costs {e.g., depreciation, insurance, and utilities], $470,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct laborhours on all jobs during the year. g. Jobs costing $1,717,900 to manufacture according to theirjob cost sheets were completed during the year. h. Jobs were sold on account to customers during the year for a total of $3,225,000. Thejobs cost $1,727,900 to manufacture according to theirjob cost sheets. Foundational 3-15 (Align) 15. 1What is the net operating income for the year? _:|