Henton, Inc. budgeted $294,000 for overhead. Based on a normal activity level of 7,000 units and a standard of 3 machine hours per unit, the standard fixed overhead allocation rate is $12 per machine hour. During the current period, 6,100 units were produced and 5,600 units were sold. Actual machine hours were 18,000, and actual overhead was $280,000. Assume variable overhead is allocated based on machine hours.
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