Shoe Co. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2,050,000. The company used 1,000 hours of processing on Job No. LKP during the period and incurred overhead costs totaling $2,100,000. The budgeted machine hours for the year totaled 40,000. How much overhead should be applied to Job No. LKP?

$52,500

$51,250

$1,050

$1,025