Ana Carillo and Associates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the work is custom, many of the cabinets are a standard size. One such non-custom model is called Luxury Base Frame. Normal production is 1,060 units. Each unit has a direct labor hour standard of 5 hours. Overhead is applied to production based on standard direct labor hours. During the most recent month, only 950 units were produced; 4,800 direct labor hours were allowed for standard production, but only 4,200 hours were used. Standard and actual overhead costs were as follows.

Standard Actual (1,060 units) (950 units) Indirect materials Indirect labor (Fixed) Manufacturing supervisors salaries (Fixed) Manufacturing office employees salaries (Fixed) Engineering costs Computer costs Electricity (Fixed) Manufacturing building depreciation (Fixed) Machinery depreciation (Fixed) Trucks and forklift depreciation Small tools (Fixed) Insurance (Fixed) Property taxes $12,800 45,700 23,900 13,800 28,700 10,600 2,700 8,500 3,200 1,600 740 530 320 $153,090 $ 13,100 54,300 23,400 13,300 26,600 10,600 2,700 8,500 3,200 1,600 1,490 530 320 $159,640 Total Your answer is correct. Determine the overhead application rate. (Round answer to 2 decimal places, e.g. 15.75.) Overhead application rate 28.88 per direct labor hour Your answer is correct Determine how much overhead was applied to production. (Round answer to 0 decimal places, e.g. 1,575.) Applied overhead 138624