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Overhead information for Cran-Mar Company for October follows: Total factory overhead cost incurred $ 30,400 Budgeted fixed factory overhead cost $ 7,129 Total standard overhead

Overhead information for Cran-Mar Company for October follows:

Total factory overhead cost incurred $ 30,400
Budgeted fixed factory overhead cost $ 7,129
Total standard overhead rate per machine hour (MH) $ 4.94
Standard variable factory overhead rate per MH $ 3.40
Standard MHs allowed for the units manufactured 4,000

What is the denominator activity level that was used to establish the fixed factory overhead application rate?

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