Better Air For You, Inc manufactures specialty air cleaning equipment for industrial complexes. Since the equipment is unique, Better Air designs each piece to customer specifications. The company uses a job-order cost system and applies overhead on the basis of machine hours using a predetermined overhead rate. For the year, budgeted manufacturing overhead is $6,750,000 and the expected activity level is 120,000 machine hours. Data regarding jobs in February are presented below. By the end of February 2021, all jobs but NM824 & TX825 were completed, and all completed jobs had been delivered to customers with the exception of AR987 and OR123. Balance Direct Direct Machine 1/31/2021 Materials Labor Hours CO456 $187,576 $68,657 $28,400 745 AR987 169,745 17,625 12,160 145 OR123 103,900 21,680 15,460 380 NM824 18,670 167,400 48,000 2,800 CA996 0 115,000 136,800 3,300 TX825 0 28,900 12,580 1,700