Bakerston Company 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: Raw materials Work in process Finished goods Beginning Balance $ 11,700 $ 32,900 $104,000 Ending Balance $ 15,700 $ 14,400 $120,000 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 17,100 machine-hours and incur $256,500 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $411,000 Raw materials were requisitioned for use in production, $407,000 ($379,000 direct and $28,000 indirect). The following employee costs were incurred: direct labor, $334,000; indirect labor, $72,000; and administrative salaries, $154,000 Factory utility costs, $24,000 is related to selling, general, and administrative activities . Selling costs, $111,000 . Depreciation for the year was $128,000 of which $113,000 is related to factory operations and $15,000 Manufacturing overhead was applied to jobs. The actual level of activity for the year was 14,500 machine-hours .Sales for the year totaled $1,287,000