Froya Fabrikker A/S of Bergen, Norway, 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 based on direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $374,000 of manufacturing overhead for an estimated allocation base of 1,100 direct labor-hours. The following transactions occurred during the year: a. Raw materials purchased on account, $235,000. b. Raw materials used in production (all direct materials), $220,000. c. Utility bills incurred on account, $66,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1,175 hours) Indirect labor Selling and administrative salaries $ 265,000 $ 97,000 $ 145,000 e. Maintenance costs incurred on account in the factory, $61,000 f. Advertising costs incurred on account, $143,000. g. Depreciation recorded for the year, $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $116,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). i. Manufacturing overhead cost applied to jobs, $__? j. Cost of goods manufactured, $840,000. k. Sales for the year (all on account) totaled $1,550,000. These goods cost $870,000 according to their job cost sheets. The beginning balances in the inventory accounts were: Raw Materials Work in Process Finished Goods $ 37,000 $ 28,000 $ 67,000