The fixed overhead is distributed using activity-based costing principles. For example, at current production levels, the forming machine spends 100 hours on model S shelves and 700 hours on model LX shelves. The forming machine is used 800 hours of the month, of which 12.5% of the time is spent on model S shelves and 87.5% is spent on model LX shelves. The $95,000 of fixed overhead in the forming department is distributed as $11,875 (= 95,000 0.125) to model S shelves and $83,125 (= 95,000 0.875) to model LX shelves. The fixed overhead per unit of output is allocated as $29.69 (= 11,875/400) for model S and $59.38 (= 83,125/400) for model LX. In the calculation of the standard overhead cost, the fixed and variable costs are added together, so that the overhead cost for the forming department allocated to a model S shelf is $149.69 (= 29.69 + 120, shown in cell G20 rounded up to $150). Similarly, the overhead cost for the forming department allocated to a model LX shelf is $229.38 (= 59.38 + 170, shown in cell H20 rounded down to $229)