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 labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $382,500 of manufacturing overhead for an estimated allocation base of 850 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account, $300,000. Raw materials used in production (all direct materials), $285,000. Utility bills incurred on account, $79,000 (80% related to factory operations, and the remainder related to selling and administrative activities). Accrued salary