Upholstery Inc. uses a job-order costing system to accumulatemanufacturing costs

Upholstery Inc. uses a job-order costing system to accumulatemanufacturing costs. The companys work-in-process on December 31201 consisted of one job (no. 2077) which was carried on theyear-end balance sheet at $156800. There was no finished-goodsinventory on this date.Finlon applies manufacturing overhead toproduction on the basis of direct-labor cost. (The budgeteddirect-labor cost is the companys practical capacity in terms ofdirect-labor hours multiplied by the budgeted direct-labor rate.)Budgeted totals for 202 for direct labor and manufacturingoverhead are $4200000 and $5460000 respectively. Actualresults for the year follow.