Arca Incorporated makes a single producta critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted (Planned) Overhead: Budgeted variable manufacturing overhead $ 38,700 Budgeted fixed manufacturing overhead 170,700 Total budgeted manufacturing overhead $ 209,400 Budgeted production (a) 20,000 units Standard hours per unit (b) 1.50 machine-hours Budgeted hours (a) (b) 30,000 machine-hours Applying Overhead