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XLR Inc. estimates that the yearly overhead costs are $90,000 and the machine hours are estimated at 24,000 hours per year. Manufacturing overhead is applied

XLR Inc. estimates that the yearly overhead costs are $90,000 and the machine hours are estimated at 24,000 hours per year. Manufacturing overhead is applied using a predetermined overhead rate based on the number of machine hours. Under normal circumstances the factory would operate for 2,100 machine hours for the month of March. However, due to some unexpected maintenance 10 machines were out of service for a combined total of 240 hours (during time they would normally be running). The actual overhead expenses for March were:

  • Factory utilities: $1,250
  • Factory building depreciation: $4,650
  • Insurance expense: $1,500

What was the applied manufacturing overhead for the month of March?

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