43. Estimated annual overhead cost is $500,000. Estimated annual machine hours are 100,000 hours. Actual machine hours used in making 100 units of Product A this month are 1,250 hours.

The pretermined overhead rate is:

Direct Materials: $250,000

Direct Labor: 200,000

Indirect labor and Materials: 40,000

Depreciation on plant and equipment: 20,000

Total: $510,000

a. $400 per machine hour

b. $5 per machine hr

c. $4 per machine hr

d. $20 per machine hr

e. none of the above