Direct material $2,300,000 Advertising expense 99,000 Depreciation on factory building 116,000 Direct labor: wages 460,000 Cost of finished goods inventory at year-end 115,000 Indirect labor: wages 142,000 Production supervisor's salary 46,000 Service department costs* 100,000 Direct labor: fringe benefits 97,000 Indirect labor: fringe benefits 31,000 Fringe benefits for production supervisor 11,000 Total overtime premiums paid 55,000 Cost of idle time: production employees $ 40,000 Administrative costs 150,000 + Rental of office space for sales personnel Sales commissions 15,000 Product promotion costs 4,000 10,000 *All services are provided to manufacturing departments. Cost of idle time is an overhead item; it is not included in the direct-labor wages given above. The rental of sales space was made necessary when the sales offices were converted to storage space for raw material.