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Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oill fields. The company uses

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Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oill 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 $395,600 of manufacturing overhead for an estimated allocation base of 920 direct labor-hours. The following transactions took place during the year a. Raw materials purchased on account, $290,000 b. Raw materials used in production (all direct materials), $275,000 c Utility bills incurred on account, $77,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d Accrued salary and wage costs Direct labor (970 hours) Indirect labor Selling and adninistrative salaries $ 320,80e s 188,888 s 200,eee e. Maintenance costs incurred on account in the factory, $72,000 f Advertising costs incurred on account, $154,000 g Depreciation was recorded for the year, $90000 (75% related to factory equipment, and the remainder related to selling and administrative equipment) count $115000 (80% related to fa ctory facilities and the remainder related to selling and adiministrative

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