Figure $2$

The following information was extracted from the accounting records of Bowater Company. The annual flexible overhead budget is expected to be $$215,000$ of fixed costs and $$6$ per machine hour. The budgeted number of machine hours for the coming year is $8,000,$ and $7,500$ machine hours were actually used during the year.

Actual overhead costs incurred for the year:

Indirect materials $$97,500$

Indirect labor $$60,007$

Utilities $$10,006$

Insurance $$25,000$

Rent $$72,800$

$12.$ Refer to Figure $2.$ If Bowater uses a predetermined overhead rate to apply overhead, manufacturing overhead applied would be $($round the rate to two decimal places$)$