Columbia sportswear company launched a new winter coat line production starts in early spring to prepare for the winter season. Columbia purchased extra machinery to ensure production for other coat lines were not impacted. The annual manufacturing overhead cost related to the new machines are $$132000$ The practical capacity of the new machine is $4400$ machine hours a year, however because of the seasonal nature of the demand the machine will be utilized for half of its capacity for the year resulting and significant excess capacity