Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the companys inventory balances were as follows: Raw materials $ 20,500 Work in process $ 11,800 Finished goods $ 30,900 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,900 machine-hours and incur $173,430 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased on account: $218,000. Raw materials were requisitioned for use in production: $199,000 (80% direct and 20% indirect). The following costs were incurred for employee services: Direct labour $ 167,200 Indirect labour $ 28,800 Sales commissions $ 38,700 Administrative salaries $ 83,600 Heat, power, and water costs were incurred in the factory: $46,050. Prepaid insurance expired during the year: $14,500 (85% relates to factory operations, and 15% relates to selling and administrative activities). Advertising costs were incurred, $54,500. Depreciation was recorded for the year: $65,400 (90% relates to factory operations, and 10% relates to selling and administrative activities). Manufacturing overhead cost was applied to production. The company recorded 41,800 machine-hours for the year. Goods that cost $520,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. Sales for the year totalled $741,900 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $513,200.