Custom Metal Works produces castings and other metal parts to customer specifications. The company uses a job-order costing system and applies overhead costs to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,301,600 in manufacturing overhead cost at an activity level of 566,000 machine-hours.

The company had no work in process at the beginning of the year. The company spent the entire month of January working on one large order