Exercise 11-4A Calculating applied overhead Aurora Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation $344,000 Supplies 42,000 Materials handling 68,000 Property taxes 30,000 Production setup 42,000 Rent 70,000 Maintenance 60,000 Supervisory salaries 244,000 The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 200,000 and for machines were 125,000.