The following cost data relate to the manufacturing activities of Chang Company during the just completed year Manufacturing overhead costs incurred. Indirect materials Indirect labor Property taxes, factory Utilities , factory Depreciation, factory Insurance, factory Total actual manufacturing overhead costs incurred Other costs incurred: $ 16,800 148,000 9,800 88,000 295, 300 11,800 $569,700 Purchases and of raw materials (both direct and indirect) $418,000 $ 78,000 Direct labor cost Inventories : Raw materials, beginning Raw materials, ending work in process , beginning Work in process , ending $ 21,800 $ 31, 800 $ 41, 800 $ 71,800 The company uses a predetermined overhead rate of $27 per machine-hour to apply overhead cost to jobs. A total of 21,500 machine-hours were used during the year