Acme Company uses a standard cost accounting system and applies manufacturing overhead

costs to inventory based on machine hours. During the current year, Acme's budgeted fixed

manufacturing overhead costs are $$140,000$ and the budgeted machine hours are $70,000.$

After year end, Acme determines that the fixed manufacturing overhead budget variance is

$$1,600$ favorable and the fixed manufacturing overhead volume variance is $$2,560$ favorable.

Actual machine hours for the year are $72,500.$ For purposes of computing overhead variances,

what are the standard machine hours allowed for actual production?

$69,420$ hours

$71,280$ hours

$71,350$ hours

$71,910$ hours