A manufacturer of chemicals shows the following budgeted costs for the next year: Direct Materials Direct Labor Rent on factory building Depreciation on factory equipment Indirect labor (factory equipment maintenance) Company president's salary $8,000 $40,000 $30,000 $16,000 $20,000 $200,000 The company uses machine hours as the allocation base for its manufacturing overhead (MOH). They estimate to run their machines for 20,000 hours next year. The predetermined (budgeted) manufacturing overhead rate will be: A. $3.30 machine hour B. $15.70 machine hour OC. $2.40/machine hour D. $5.70 machine hour