Luzadis Company makes furniture using the latest 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 a cost formula that estimates $$592,000$ of total manufacturing overhead for an estimated activity level of $74,000$ 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,$67,000],[$Manufacturing overhead cost,$$551,000$