1. Kelsh Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year: Direct materials $10,000 Direct labour $30,000 Sales commissions $40,000 Salary of production supervisor $20,000 Indirect materials $4,000 Advertising expense $8,000 Rent on factory equipment $10,000 Kelsh estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year. What will be the predetermined overhead rate per hour? A. $6.80. B. $6.40. 9.58340. D. $8.20