Adam Leeman Ltd has determined total factory overhead costs at both minimum and maximum levels of production — 200 000 machine hours and 300 000 machine hours respectively. The total factory overhead, made up of variable costs, mixed costs and fixed costs, was $796 000 for 300 000 machine hours and $646 000 for 200 000 machine hours. At an activity level of 200 000 machine hours, the total factory overhead consists of the following components:

Fixed costs Variable costs Mixed costs	$	230 000 220 000   196 000
	$	646 000

Required

A. Determine the fixed and the variable portion (rate per machine hour) of the mixed costs.

B. What should be the total factory overhead cost for 240 000 machine hours?