A manufacturer of chemicals shows the following budgeted costs for the next year:

Direct Materials	$8,000
Direct Labor	$40,000
Rent on factory building	$30,000
Depreciation on factory equipment	$16,000
Rent on office building for accounting department	$20,000
Company presidents salary	$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.

$4.70 / machine hour

B.

$3.30 / machine hour

C.

$2.30 / machine hour

D.

$5.70 / machine hour