ABC Company estimates total overhead costs at $1,500,000 and will apply overhead to units produced based on 200,000 estimated machine hours. During the year, ABC Company incurred actual overhead costs of $1,250,000 and achieved 250,000 machine hours. ABC Company's predetermined overhead rate is?

Answer: C. 6.00 but their explanation was this (MOH application rate = $1,500,000 estimated costs/200,000 estimated MH = $7.50/MH)

However, the given choices were:

a. 6.25 per machine hour

b. 5.00 per machine hour

c. 6.00 per machine hour

d. 4.80 per machine hour

I don't understand how they got $6.00?