Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. ting system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined The company uses a job-order cost overhead rate is based on a cost formula that estimated $85,000 of manufacturing overhead for an estimated activity level of $50,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: Raw materials $10,300 Work in process$4,300 Finished goods $ 8,600 During the year, the following transactions were completed: a. Raw materials purchased for cash, $ 161,000 b. Raw materials used in production, $141,000 (materials costing $122,000 were charged directly to jobs; the remaining materials were indirect). C. Cash paid to employees as follows: 174,000 s 218,800 5 29,000 $ 42,000 Direct labor Indirect labor Administrative salaries d. Cash paid for rent during the year was $18.200 (513700 of this amount related to factory operations, and the remainder related to selling and administrative activities).