Westin Company uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs and activities for the current year are presented below for the three activity cost pools:

	Estimated Overhead Cost	Expected Activity
Activity 1	$11,916	900
Activity 2	$12,360	1,200
Activity 3	$19,950	1,000

Actual activity for the current year was as follows:

	Actual Activity
Activity 1	915
Activity 2	1,185
Activity 3	965

The amount of overhead applied for Activity 2 during the year was closest to:

Question 8 options:

1)	$12,205.50.

2)	$12,360.00.

3)	$12,460.00.

4)	$16,905.75.