Atlanta Inc applies manufacturing overhead based on machine hours. The following information is available for the period:

Machine Hours at Capacity : $79,000

Machine Hours estimated for the period : $68,000

Machine Hours actually incurred during the period : $63,500

Estimated Manufacturing Overhead : $3,384,360

Actual Manufacturing Overhead : $3,642,690

If Atlanta bases its predetermined overhead rate on activity at capacity, how much lower will its applied manufacturing overhead be versus traditional GAAP method?

Answer was $714,705 but I don't get how, please show help with steps.

Thanks :)