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 $19,000 $11,200 $30,600 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,600 machine-hours and incur $166,530 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $212,000. b. Raw materials were requisitioned for use in production: $196,000 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour Sales commissions Administrative salaries $164,800 $ 28,200 $ 37,800 $ 82,400 d. Heat, power, and water costs were incurred in the factory: $44,700. e. Prepaid insurance expired during the year: $13,000 (85% relates to factory operations, and 15% relates to selling and administrative activities). f. Advertising costs were incurred, $53,000.