Help Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs based on direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated
$378,000
of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions occurred during the year: a. Raw materials purchased on account,
$285,000
. b. Raw materials used in production (all direct materials),
$270,000
. c. Utility bills incurred on account,
$76,000
(
85%
related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: \table[[Direct labor (950 hours),
$315,000