excel PROBLEM 3-31 Journal Entries; T-Accounts; Comprehensive Problem; Financial Statements; [LO3, L04, L05, L06, L07, LO8] Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. (The Norwegian currency is the krone, which is denoted Systems Design: Job-Order Costing 137 by Nkr.) The company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of direct labor-hours. At the beginning of the year, the following estimates were made for the purpose of computing the predetermined overhead rate: manufacturing overhead cost, Nkr360,000; and direct labor-hours, 900. The following transactions took place during the year (all purchases and services were ac- quired on account): a. Raw materials were purchased for use in production, Nkr200,000. b. Raw materials were requisitioned for use in production (all direct materials), Nkr185.000. c. Utility bills were incurred, Nkr70,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Salary and wage costs were incurred: Direct labor (975 hours). Nkr230,000 Indirect labor . ... Nkr90,000 Selling and administrative salaries. Nkr1 10,000