Dowty Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated lathe. Additional information is provided below for the most recent month: Estimates at the beginning of the month: Estimated total fixed manufacturing overhead Capacity of the lathe Actual results: Actual total fixed manufacturing overhead Actual hours of lathe use $ 19,964 280 hours $ 19,964 230 hours The manufacturing overhead applied is closest to: Multiple Choice $19,964 $16,399 $7,639 $9,300