15

Buker Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:

Estimated machine-hours	72,900
Estimated variable manufacturing overhead	$3.10	per machine-hour
Estimated total fixed manufacturing overhead	$838,710

The predetermined overhead rate for the recently completed year was closest to:

a	$8.69
b	$6.85
c	$14.60
d	$9.30 which is correct?