Bunnell Corporation is a manufacturer that uses job order costing On January 1, the company's inventory balances were as follows: Raw materials $40,000 Work in process $18,000 Finished goods $35,000 The company applies overhead cost to jobs on the basis of direct labor hours. For the current year, the company's predetermined overhead rate of $16.25 per direct labor hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor hours. The following transactions were recorded for the year a. Raw materials were purchased on account, $510,000, b. Raw materials use in production, $480,000. All of of the raw materials were used as direct materials c. The following costs were accrued for employee services: direct labor, $600,000, indirect labor, $150,000, selling and administrative salaries, $240,000. d. Incurred various selling and administrative expenses (e.g, advertising, sales travel costs, and finished goods warehousing), $367,000 e. Incurred various manufacturing overhead costs (e.g, depreciation, insurance, and utilities), $500,000 f Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor hours on all jobs during the year g Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year h. Jobs were sold on account to customers.during the year for a total of 52,800,000 The jobs cost $1.690,000 to manufacture according to their job cost sheets Foundational 3-3 15 of 15 Next