Luzadis Company makes furniture using the latest automated technology. The company uses a job$-$order costing system and applies manufacturing overhead cost to products on the basis of machine$-$hours. The predetermined overhead rate was based on a cost formula that estimates $$1,152,000$ of total manufacturing overhead for an estimated activity level of $72,000$ machine$-$hours.

During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year:

$\backslash$table$[[$Machine$-$hours,$55,000],[$Manufacturing overhead cost,$$1,102,000$