ine roundational 15 (LU3-1, LU3-2, LUS-3, LU3-4) [The following information applies to the questions displayed below.] Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 72,500 $ 18,200 $ 46,500 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $15.50 per direct labor-hour was based on a cost formula that estimated $620,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: a. Raw materials were purchased on account, $628,000. b. Raw materials used in production, $598,000. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor. $570,000; Indirect labor, $150,000; selling and administrative salaries, $266,000. d. Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and finished goods warehousing). $418,000. e. Incurred various manufacturing overhead costs (e.g. depreciation, Insurance, and utilities), $470,000. 1. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. g. Jobs costing $1,717,900 to manufacture according to their job cost sheets were completed during the year h. Jobs were sold on account to customers during the year for a total of $3.225,000. The jobs cost $1,727,900 to manufacture according to their job cost sheets