Required information The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4] [The following information applies to the questions displayed below) Bunnell Corporation is a manufacturer that uses job-order costing On January 1, the company's inventory balances were as follows: Raw materials $66.000 work in process $ 33.000 Finished goods $ 38,400 The company applies overhead cost to jobs on the basis of direct labor hours. For the current year, the company's predetermined overhead rate of $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 of total manufacturing overhead for an estimated activity level of 40.000 direct labor-hours. The following transactions were recorded for the year a. Raw materials were purchased on account $584,000 b. Raw materials used in production, $646,400. All of of the raw materials were used as direct materials C. The following costs were accrued for employee services direct labor, $490,000; Indirect labor, $150,000, selling and administrative salaries, $319,000 dincurred various selling and administrative expenses (eg, advertising, sales travel costs, and finished goods warehousing). $423,000, e incurred various manufacturing overhead costs (eg, depreciation, insurance, and utilities). $390,000, 1 Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor hours on all jobs during the year g Jobs costing $1623,300 to manufacture according to their job cost sheets were completed during the year h. Jobs were sold on account to customers during the year for a total of $3,547,500 The jobs cost $1633,300 to manufacture according to their job cost sheets Foundational 3-14 (Algo) 14. What is the gross margin for the year? Grossman