Caremark Corp's master budget was based on a level of activity of producing and selling 70,000 crutches with a retail price of \$80 per set. The company has the capacity to produce 90,000 units. Variable labor costs were budgeted to be \$1,400,000. Variable material costs were budgeted to be \$896,000 and variable overhead costs were budgeted to be \$1,456,000. Actual overhead costs incurred were \$1,600,200 on 75,000 units produced and sold.
What should the flexible budget variable overhead cost be under the new activity level?