During the year, ace purchased raw materials costing $200,000, incurred direct labor costs of $300,000; and paid rent of $4,000 per month for a building used to manufacture 20,000 units of product. ace also paid a salary of $2,000 per month for a factory manager. other employees were paid $15 per hour. ace sold 10,000 of the units for $200 each, using a sales force paid $1,000 per month and 10% of sales. before the business opened, ace expected total factory overhead costs of $72,000 and 18,000 direct labor hours. at the end of the year, aces raw material inventory, and work in process inventory were $10,000 and $40,000, respectively. ace applied factory overhead using direct labor hours.