Managerial Accounting Raw materials. Work in process. Finished goods $20,000 $15,000 $30,000 Highlights Notes c. The company applies overhead cost to jobs on the basis of machine-hours worked for the current year, the company's predetermined overhead rate was based on a cos at esti- mated $450,000 of total manufacturing overhead for an estimated activity level of 65,000|machine- hours. The following transactions were recorded for the year: Raw materials were purchased on account, $410,000. b. Raw materials were used in production, $380,000 ($360,000 direct materials and $20,000 indirect materials). The following costs were accrued for employee services: direct labor, $75,000; indirect labor, $110,000; sales commissions, S90,000; and administrative salaries, $200,000. d. Sales travel costs (on account) were $17,000. Utility costs (on account) in the factory were $43,000. f. Advertising costs (on account) were $180,000. g. Depreciation was recorded for the year, $350,000 (80% relates to factory assets, and 20% relates to selling and administrative assets). h. Insurance expired during the year, $10,000 (70% relates to factory operations, and the remain- ing 30% relates to selling and administrative activities). i. Manufacturing overhead was applied to production. Due to greater than expected demand for its products, the company worked 80,000 machine-hours on all jobs during the year. j. Jobs costing $900,000 to manufacture according to their job cost sheets were completed e. Managerial Accounting Raw materials. Work in process. Finished goods $20,000 $15,000 $30,000 Highlights Notes c. The company applies overhead cost to jobs on the basis of machine-hours worked for the current year, the company's predetermined overhead rate was based on a cos at esti- mated $450,000 of total manufacturing overhead for an estimated activity level of 65,000|machine- hours. The following transactions were recorded for the year: Raw materials were purchased on account, $410,000. b. Raw materials were used in production, $380,000 ($360,000 direct materials and $20,000 indirect materials). The following costs were accrued for employee services: direct labor, $75,000; indirect labor, $110,000; sales commissions, S90,000; and administrative salaries, $200,000. d. Sales travel costs (on account) were $17,000. Utility costs (on account) in the factory were $43,000. f. Advertising costs (on account) were $180,000. g. Depreciation was recorded for the year, $350,000 (80% relates to factory assets, and 20% relates to selling and administrative assets). h. Insurance expired during the year, $10,000 (70% relates to factory operations, and the remain- ing 30% relates to selling and administrative activities). i. Manufacturing overhead was applied to production. Due to greater than expected demand for its products, the company worked 80,000 machine-hours on all jobs during the year. j. Jobs costing $900,000 to manufacture according to their job cost sheets were completed e