EVE, Inc., which uses a standard costing system, has the following information for the current year. The budgeted fixed costs are $720,000. The budgeted activity level of machine-hours, the allocation base, is 240,000. The firm budgets at a level of 480,000 units of product HJS. During the year, the firm actually produced 504,000 units of HT. EVE used 245,000 machine-hours during the period and incurred costs totaling $715,000. The amount of fixed overhead that was applied to work in process during the year was

1. $715,000

2. $763,000

3. $756,000

4. $720,000