Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,260,000 in manufacturing overhead cost at an activity level of 568,000 machine-hours. The company spent the entire month of January working on a large order for 12,900 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow: Raw materials purchased on account, $313,000. Raw materials used in production, $272,000 (80% direct materials and 20% indirect materials)