$21$

Johnson Co$.$ is attempting to calculate total overhead applied. For the current year, budgeted cost driver activity levels for direct labor hours were $30,000$ hours. In

addition, budgeted factory overhead was $$90,000.$ Actual costs and hours for the year were as follows:

Direct labor hours: $32,000$

Direct labor costs: $$140,000$

Actual machine hours: $38,000$

Estimated machine hours: $42,000$

For a particular product, $1,800$ direct$-$labor hours were used. Using direct$-$labor hours as the cost driver, what amount of overhead should be applied to this product?

$$4,700$

$$5,400$

$$7,200$

$$7,300$