Crane Company thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2450000. The company used 1000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2600000. The budgeted machine hours for the year totaled 20000. How much overhead should be applied to Job No. B12?

$2600

$2450

$122500

$130000