Norwall Company's variable manufacturing overhead should be $3.00 per standard machine-hour and its fixed manufacturing overhead should be $300,000 per month.

The following information is available for a recent month:

a.	The denominator activity of 60,000 machine-hours is used to compute the predetermined overhead rate.
b.	At the 60,000 standard machine-hours level of activity, the company should produce 40,000 units of product.
c.	The company