10 Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Forming Finishing 17,000 1,000 15,000 7.000 $ 96,900 $ 65,800 $ 2.00 $ 3.60 During the current month the company started and finished Job M381. The following data were recorded for this job: Job M381: Machine-hours Direct labor-hours Direct materials Direct labor cost Forming 80 Finishing 30 30 40 $840 $750 $350 $ 1,000 The predetermined overhead rate for the Forming Department is closest to: Multiple Choice $5.70 per machine-hour < Prev 10 of 25 Next >>