Required information [The following information applies to the questions displayed below.] Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,400). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $840,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Job No. 64 Direct Material $21,000 Direct Labor Machine Hours $35,000 1,200 65 22,000 700 66 44,000 65,000 2,000 67 15,000 8,800 500 c. Manufacturing overhead during the first quarter included charges for depreciation ($34,000), indirect labor ($60,200), indirect materials used ($5,200), and other factory costs ($139,700). d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,800 for the firm. 4. Did the finished-goods inventory increase or decrease during the first quarter? By how much? (Do not round intermediate calculations.)