Gold Nest dong, family-owned enterprise birdcages the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $330,000 of manufacturing overhead for an estimated activity level of $200,000 direct labor dol- lars. At the beginning of the year, the inventory balances were as follows: Raw materials... Work in process. Finished goods During the year, the following transactions were completed: a. Raw materials purchased for cash, $275,000. $25,000 $10,000 $40,000 b. Raw materials used in production, $280,000 (materials costing $220,000 were charged directly to jobs; the remaining materials were indirect). c. Cash paid to employees as follows: Direct labor... Indirect labor Sales commissions Administrative salaries. $180,000 $72,000 $63,000 $90,000 d. Cash paid for rent during the year was $18,000 ($13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Cash paid for utility costs in the factory, $57,000. f. Cash paid for advertising, $140,000. g. Depreciation recorded on equipment, $100,000. ($88,000 of this amount related to equipment used in factory operations; the remaining $12,000 related to equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $? i. Goods that had cost $675,000 to manufacture according to their job cost sheets were completed. j. Sales for the year (all paid in cash) totaled $1,250,000. The total cost to manufacture these goods according to their job cost sheets was $700,000.