At the beginning of the year, Swaim Company estimated annual overhead costs to be $600,000 and machine hours to be used at 200,000. Swaim uses machine X hours as the base. Actual machine hours totaled 180,000 during the year. How much overhead did the company apply during the year? Selected Answer: c. $360,000 Answers: a. $444,444 b. $540,000 C. $360,000 d. Actual overhead costs are needed to determine. In reporting discontinued operations, the income statement should show in a special section 1. gains on the disposal of a discontinued component. 2.losses on the disposal of a discontinued component. Selected Answer: neither 1 nor 2. C. Answers: 1 only. A. 2 only. B. neither 1 nor 2. C. both 1 and 2. D