Required information [The following information applies to the questions displayed below.] At the beginning of the year, Seraglio Companies bought machinery, shelving, and a forklift. The machinery initially cost. $26,400 but had to be overhauled (at a cost of $1,360 ) before it could be installed (at a cost of $680 ) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $370 in each year. The shelving cost $9,400 and was expected to last 5 years, with a residual value of $620. The forklift cost $11,700 and was expected to last six years, with a residual value of $2,040. . Compute year 2 units-of-production depreciation expense for the machinery. (Do not round intermediate calculations.)