7.

Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 59,000 actual direct labor-hours and incurred $1,064,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 56,000 direct labor-hours during the year and incur $1,008,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was: