Sovereign Millwork, Ltd., produces reproductions of antique residential moldings at a plant located in Manchester, England. Because there are hundreds of products, some of which are made only to order, the company uses a job-order costing system. On July 1, the start of the companys fiscal year, inventory account balances were as follows:

Raw materials		10,900
Work in process		4,400
Finished goods		8,800

The company applies overhead cost to jobs on the basis of machine-hours. Its predetermined overhead rate for the fiscal year starting July 1 was based on a cost formula that estimated 112,000 of manufacturing overhead for an estimated activity level of 40,000 machine-hours. During the year, the following transactions were completed:

a.	Raw materials purchased on account, 167,000.
b.	Raw materials requisitioned for use in production, 141,000 (materials costing 129,000 were chargeable directly to jobs; the remaining materials were indirect).
c.	Costs for employee services were incurred as follows:

Direct labor		92,000
Indirect labor		61,300
Sales commissions		25,000
Administrative salaries		44,000

d.	Prepaid insurance expired during the year, 18,700 (13,600 of this amount related to factory operations, and the remainder related to selling and administrative activities).
e.	Utility costs incurred in the factory, 14,000.
f.	Advertising costs incurred, 14,000.
g.	Depreciation recorded on equipment, 20,000. (16,000 of this amount was on equipment used in factory operations; the remaining 4,000 was on equipment used in selling and administrative activities.)
h.	Manufacturing overhead cost was applied to jobs, ? (The company recorded 37,000 machine-hours of operating time during the year.)
i.	Goods that had cost 287,000 to manufacture according to their job cost sheets were completed.
j.	Sales (all on account) to customers during the year totaled 508,000. These goods had cost 290,000 to manufacture according to their job cost sheets.