5. At the beginning of the year, Cosmos Company estimates annual overhead costs to be $2,400,000 and that 300,000 machine hours will be operated. Using machine hours as a base, how much is the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours?

6. Fukuoka Division has the following information:

Sales $1,200,000

Variable expenses 640,000

Fixed expenses 620,000

If this division is eliminated, the fixed expenses will be allocated to the company's other divisions, what is the incremental effect on net income if the division is dropped?