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Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing...

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Accounting

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:
\table[[Machine-hours,67,000],[Manufacturing overhead cost,$551,000
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