Froya Fabrikker A$/$S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job$-$order costing system that applies manufacturing overhead cost to jobs on the basis of direct laborhours. Its predetermined overhead rate was based on a cost formula that estimated $$351,000$ of manufacturing overhead for an estimated allocation base of $900$ direct labor$-$hours. The following transactions took place during the year:

a$.$ Raw materials purchased on account, $$265,000.$

b$.$ Raw materials used in production $($all direct materials$),$ $$250,000.$

c$.$ Utility bills incurred on account, $$72,000(85\%$ related to factory operations, and the remainder related to selling and administrative activities$).$

d$.$ Accrued salary and wage costs:

$\backslash$table$[[$Direct labor $(980$ hours$),$$$295,000$