Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materials Work in process Finished goods $17,400 $11,400 $32,800 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,000 machine-hours and incur $158,040 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $207,000. b. Raw materials were requisitioned for use in production: $197,000 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour Sales commissions Administrative salaries $167,000 $ 28,400 $ 37,400 $ 82,800 d. Heat, power, and water costs were incurred in the factory: $43,400. e. Prepaid insurance expired during the year: $11.400 (90% relates to factory operations, and 10% relates to selling and administrative activities). 1. Advertising costs were incurred, $51.400. g. Depreciation was recorded for the year: $61,400 (85% relates to factory operations, and 15% relates to selling and administrative