Babb Company is a manufacturing firm that uses job-order costing. 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 17,000 machine-hours and incur $272,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased, $416,000 b. Raw materials were requisitioned for use in production, $412,000 $(350,000 direct and $62,000 indirect). c. The following employee costs were incurred: direct labor, $330,000; indirect labor, $69,000; and administrative salaries, $157,000 d. Selling costs, $113,000. e. Factory utility costs, $29,000. f. Depreciation for the year was $121,000 of which $114.000 is related to factory operations and $7.000 is related to selling. general, and administrative activities. g. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 15,000 machine-hours h. Sales for the year totaled $1,282,000