cartwright construction operates a normal job order costing system and applies overhead costs to jobs on the basis of direct materials usedin production. Its predetermiend overhead rate was based on a cost formula that estimated 1 2 0 0 0 0 0 of manufacturing overhead for an estimated allocation base of 7 5 0 0 0 0 driect material dollars to be used in production ( i . e . , the cost driver is direct materials ) . The company is preparing their financial statements and has provided the following data for the most recent completed year: purchase of raw materials 4 8 5 0 0 0 direct labor cost 8 0 0 0 0 indirect labor 1 7 0 0 0 0 property taxes ( facotry ) 5 2 0 0 0 depreciation of machinery 2 6 0 0 0 0 machine maintenance 9 0 0 0 0 administrative salaries 4 5 0 0 0 sales commisions 1 8 0 0 0 insurance ( factory ) 6 5 0 0 rent factory 1 7 0 5 0 0 raw materials: beginning 3 0 0 0 0 , ending 8 0 0 0 0 work in progres: beginning