The following information applies to the requirements below) Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials $77,000 Work in process 29,000 59,400 Finished goods The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined o bead rate of $13.25 per direct labor-hour was based on a cost formula that estimated $530,000 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, $708,000. b. Raw materials used in production, $666,400. All of of the raw materials were used an direct materials. The following costs were accrued for employee services: direct labor, $480,000; Indirect labor, $150,000; selling and administrative salaries $335,000. d. Incurred various selling and administrative expenses (eg. advertising, sales travel costs, and finished goods warehousing), $397,000. e Incurred various manufacturing overhead costs (e.g. rent, insurance, and utilities). $380,000. Manufacturing overhead cost was applied to production. The company actually wurked 41,000 direct labor-hours on all jobs during the year. Jobs coating $1,606,150 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 $3,165,000 The jobs cost $1.616,150 to manufacture according to their job cost sheets.