The condensed form of Nordstrop Companys flexible budget for manufacturing overhead follows: Cost Machine-Hours Formula Overhead Costs (per machine-hour) 5,000 6,000 7,000 Variable cost $ 1.70 $ 8,500 $ 10,200 $ 11,900 Fixed cost 13,500 13,500 13,500 Total overhead cost $ 22,000 $ 23,700 $ 25,400 The following information is available for a recent period: The denominator activity of 5,000 machine-hours was chosen to compute the predetermined overhead rate. At the 5,000 standard machine-hours level of activity, the company should produce 1,000 units of product. The companys actual operating results were as follows: Number of units produced 1,300 Actual machine-hours 9,200 Actual variable overhead costs $ 14,260 Actual fixed overhead costs $ 18,000