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 $ 23,000 Work in process $ 12,800 Finished goods $ 31,400 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,400 machine-hours and incur $157,080 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased on account: $228,000. Raw materials were requisitioned for use in production: $204,000 (85% direct and 15% indirect). The following costs were incurred for employee services: Direct labour $ 171,200 Indirect labour $ 29,800 Sales commissions $ 40,200 Administrative salaries $ 85,600 Heat, power, and water costs were incurred in the factory: $48,300. Prepaid insurance expired during the year: $17,000 (80% relates to factory operations, and 20% relates to selling and administrative activities). Advertising costs were incurred, $57,000. Depreciation was recorded for the year: $68,400 (75% relates to factory operations, and 25% relates to selling and administrative activities). Manufacturing overhead cost was applied to production. The company recorded 42,800 machine-hours for the year. Goods that cost $521,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. Sales for the year totalled $765,100 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $513,200.