The Tamarisk manufactures double$-$sided pens$-$a pen on one side, a highlighter on the other. As the accounting manager, Shade is responsible for presenting three different versions of the company's income statement to the rest of the management team at yearend. Team members are very familiar with absorption costing, as they have been evaluating gross margin amounts and percentages for years. They are less keen on how fixed$-$ MOH impacts the income statement, so Shade gathers the following current information. The information includes three possible capacity levels for calculating the fixed$-$ MOH rate. Shade also notes there are no price or efficiency variances this period. Any fixed$-$MOH volume variance is written off to COGS.

$\backslash$table$[[$Theoretical level,$93,000$ units$],[$Practical level,$55,800$ units$],[$Normal level,$45,000$ units$],[$Actual production,$59,800$ units$],[$Sales volume,$50,000$ units$],[$Budgeted fixed$-$MOH cost,$$279,000$