Mid-Life Motorcycles (MLM) is a small shop that builds customized motorcycles, mostly for middle-aged men with significant discretionary income who are hoping to fulfill a high-school dream. Since it works with high-end clients, all of its work is custom and it makes many of the bike parts used, including frames, in-house. Other parts, such as the engine, are purchased from outside suppliers and then modified in-house. Although most of the bikes are built to-order for a specific individual, the shop occasionally builds a bike with no prearranged buyer. These bikes are sometimes intended to be entered in custom-bike contest and then sold afterwards. The shop has been in existence for 10 years, but for the sake of simplicity, assume it has no beginning inventories for 2019. Five motorcycle restoration projects were worked on during 2019. By the end of the year, four of these projects were complete and three of them had been sold. The following selected data are from MLM's 2019 budget. Advertising Direct materials Direct labor $ 11,380 207,100 186,600 Rent on office space 10,100 Rent on factory space 30,300 Indirect materials 15,300 Maintenance costs for factory equipment 5,200 Utilities costs for office space 1,800 Utilities costs for factory space 3,800 Depreciation on factory equipment 11,400 Machine hours expected to be worked 3,800 Direct labor hours expected to be worked 6,200 The following information relates to production events during 2019. Raw materials were purchased for $197,900. Materials used in production totaled $191,300; $14,500 of these were considered indirect materials costs. The remaining $176,800 of direct materials costs related to individual motorcycle jobs as follows. Direct Materials Cost Job Number 115 $40,600 116 33,100 117 39,200 118 119 37,000 26,900 Labor costs incurred for production totaled $168,500. The workers are highly skilled craftsmen who require little supervision. Therefore, all of these costs were considered direct labor costs and related to individual jobs as follows. Job Number 115 116 TT 117 118 119 Direct Labor Cost $37,400 39,200 45,100 28,200 18,600