What is Dell's predetermined manufacturing overhead rate?

a. SO. 1 1/machine hour

b. $0.13/machine hour

c. S7.50/machine hour

d. S9.00/machine hour 

The following information about Dell Corporation's manufacturing of computers. Assume Dell 

• Allocates manufacturing overhead based on machine hours.

• Budgeted 10 million machine hours and $90 million of manufacturing over- head costs.

• Actually used 12 million machine hours and incurred the following actual costs (in millions):

Indirect labor $10 Depreciation on plant 47 Machinery repair 15 Direct labor 75 Plant supplies Plant utilities Advertising Sales commissions 5 8 35 25