Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 December 31 79,00042,000 44,000 102,000 Direct materials Work in process Finished goods Other information Direct materials purchases Cost of goods available for sale Actual factory overhead costs Skipped 68,000 117,000 $ 326,000 952,000 262,000 The cost of direct materials used for production is: Multiple Choice $326,000. $310,000 $352,500 $363,000. $299,000