The Foundational 15 (Algo) [LO3-1, L03-2, L03-3, 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 $ 86,500 Work in process $ 22,600 Finished goods $ 63.900 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 $15.00 per direct labor-hour was based on a cost formula that estihrated $600,000 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, $632,000. b. Raw materials used in production, $585,600. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services direct labor, $550,000; Indirect labor. $150,000: selling and administrative salaries, $328,000 d. incurred various selling and administrative expenses (eg. advertising, sales travel costs, and finished goods Warehousing). $375,000 e incurred various manufacturing overhead costs (eg, depreciation, Insurance, and utilities). $450,000 Manufacturing overhead cost was applied to production. The company actually worked 41000 direct labor-hours on all Jobs during the year g. Jobs costing $1,670,300 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 $3,172,500. The jobs cost $1680,300 to manufacture according to their job cost sheets Foundational 3-14 (Algo) 14. What is the gross margin for the year? Gross margin Foundational 3-15 (Algo) 15. What is the net operating income for the year? Net operating income