Baab Corporation 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 Beginning Balance Ending Balance Raw materials Work in process Finished Goods $ 14,700 $ 27,700 $ 62,700 $ 22,700 $9,700 $ 77,700 . . . 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 33,700 machine-hours and incur $283,080 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $315,700. Raw materials were requisitioned for use in production, $307,700 ($280,300 direct and $27,400 indirect). The following employee costs were incurred: direct labor, $377,700 Indirect labor, $96,700, and administrative salaries, $172,700 Selling costs, $147,700. Factory utility costs, $10,700 Depreciation for the year was $169,000 of which $154,000 is related to factory operations and $15,000 is related to selling. general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,140 machine-hours. Sales for the year totaled $1,300,000.