At the beginning of the year, Davis Company estimates annual overhead costs to be $2,300,000 and that 200,000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 250,000 hours is 2,300,0002,875,0002,200,0001,840,000 At the beginning of the year, Davis Company estimates annual overhead costs to be $2,300,000 and that 200,000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 250,000 hours is 2,300,0002,875,0002,200,0001,840,000