A company uses a predetermined overhead rate based on machine hours to apply its manufacturing overhead to the Jobs. In the past year, the company worked 8,000 machine hours and incurred $60,000 of actual manufacturing overhead costs. Overhead ended up being $4,000 underapplied. What was the predetermined overhead rate that the company used? Select one: $8.20 b. $6.80 c. $7.00 d. $8.00