A Company uses job order costing and has chosen machine hours to allocate its manufacturing overhead. The company estimates that total machine hours to be operated next year are 400,000 hours. The estimated variable overhead is $5 per machine hour and the estimated fixed overhead costs are $800,000. The predetermined overhead rate is: O a. $7 O b. $3.5 O c. $2 O d. None of the answers given e. $24