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 1,120 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 1,010 units were produced; 5,000 direct labor hours were allowed for standard production, but only 4,500 hours were used. Standard and actual overhead costs were as follows.

Standard (1,120 units) Actual (1,010 units) Indirect materlals Indirect labor (Fixed) Manufacturing supervisors salarles (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 13,600 48,900 25,600 14,800 30,700 11,400 2,800 9,100 3,400 1,700 800 570 340 163,710 $14,000 58.000 25,000 14,200 28,400 11,400 2,800 9,100 3,400 1,700 1,590 570 340 $170,500 Total ? (a) Your answer is correct. Determine the overhead application rate. (Round answer to 2 decimal places, e.g. 15.75.) Overhead application rate 9.23 per direct labor hour Attempts: 1 of 3 used Your answer is incorrect. Try again. Determine how much overhead was applied to production. (Round answer to 0 decimal places, e.g. 1,575.) Applied overhead Attempts: 1 of 3 usedSAVE FO