The Last Whale, Inc. is a manufacturer that uses a job order costing system. Prior to the beginning of year 2020, the firm estimated the following:

• Total estimated direct materials costs will be $1,780,000;
• Total estimated direct labor costs will be $1,139,200;
• Total estimated Variable Factory overhead costs will be $424,000.
• Total estimated Fixed Factory overhead costs will be $1,000,000.
• Total estimated Direct labor hours (DLh) will be 20,000 DLh.
• Total estimated Machine hours (Mh) will be 10,000 Mh.

During January 2020, the firm started and completed Job 1. We have the following actual information about job 1:

• DM used: $4,200
• DL used: $7,820
• Direct Labor hours (DLh) used: 45
• Machine hours (Mh) used: 20

Calculate the amount of factory overhead applied to job 1 if the firm uses DM dollars (DM$) to apply overhead.

Group of answer choices

$5,250

$3,204

$9,775

$3,360

$5,040