work i Saved Help Save & Exit Check m Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials 77,500 $32,800 $ 34,800 Work in process Finished goods 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 $12.75 per direct labor-hour was based on a cost formula that estimated $510,000 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, $654,000 b. Raw materials use in production, $618,800. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $460,000; indirect labor, $150,000; selling and administrative salaries, $270,00o. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs warehousing), $417,000 e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $360,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. g. Jobs costing $1,539,250 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 $1,549,250 to manufacture according to their job cost sheets. and finished goods e. Incurred various manufacturing overhead costs (e.g., deprec f. Manufacturing overhead cost was applied to production. Th all jobs during the year. g. Jobs costing $1,539,250 to manufacture according to their jc h. Jobs were sold on account to customers during the year for manufacture according to their job cost sheets Part 14 of 15 eBook Print 14. What is the gross margin for the year? Gross margin g. Jobs costing $1,539,250 to manufacture according to h. Jobs were sold on account to customers during the y manufacture according to their job cost sheets. eBook Print 15. What is the net operating income for the year? Net operating income