Return to Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year. Beginning Balance $14,400 $27,400 Ending Balance $22,400 $9,400) Raw materials Work in process Finished Goods . . . $ 62,400 $ 77,400 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,400 machine-hours and incur $260,520 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $315,400. Raw materials were requisitioned for use in production, $307,400 ($280,600 direct and $26,800 indirect). The following employee costs were incurred: direct labor, $377,400; indirect labor, $96,400; and administrative salaries, $172,400 Selling costs, $147,400. Factory utility costs, $10,400. Depreciation for the year was $151.000 of which $135,000 is related to factory operations and $16,000 is related to selling. general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,080 machine-hours. Sales for the year totaled $1.269,000.