Luzadis Company makes furniture using Automated technology. The company uses a job order costing system and applies manufacturing overhead cost to products based on machine hours. The predetermined overhead rate was based on the cost formula that estimate $$880,000$ of total manufacturing overhead for an estimated activity level of $88,000$ machine$-$ hours.

During the year, a large quantity of furniture on the market caused Luzadis to cut production and build inventories.The Company provided the following data for the year:$\backslash$table$[[$Machine$-$hours,$79,000],[$Manufacturing overhead cost,$$836,000$