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: - 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 33,050 machine-hours and incur $234.655 in manufacturing overhead cost. The following transactions were recorded for the year: - Raw materials were purchased, $315.050. - Raw materials were requisitioned for use in production, $307,050($280,950 direct and $26,100 indirect) - The following employee costs were incurred: direct labor, $377,050; indirect labor, $96,050; and administrative salaries, $172.050 - Selling costs, $147,050. - Factory utility costs, $10,050. - Depreciation for the year was $130,000 of which $120,100 is related to factory operations and $9.900 is related to selling. general, and administrative activities. - Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,010 machine hours. - Sales for the year totaled $1,255,000