PROBLEM 3-15 Journal Entries; T-Accounts; Financial Statements LO3-1, LO3-2, LO3-3, LO3-4 Froya Fabrikker A/S of Bergen, Norway, is a small company that 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 on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place dur- ing the year: a. Raw materials purchased on account, $200,000. b. c. d. Raw materials used in production (all direct materials), $185,000. Utility bills incurred on account. $70,000 (90% related to factory operations, and the remain- der related to selling and administrative activities). Accrued salary and wage costs: e. Direct labor (975 hours). Indirect labor Selling and administrative salaries. Maintenance costs incurred on account in the factory. $54,000. f. Advertising costs incurred on account, $136.000. g. h. $230,000 $90,000 $110,000 Depreciation was recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). Rental cost incurred on account, $120,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). i. Manufacturing overhead cost was applied to jobs, $_?