aj Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year.

Estimated total fixed manufacturing overhead from the beginning of the year	$	534,000
Estimated activity level from the beginning of the year		30,000	machine-hours
Actual total fixed manufacturing overhead	$	487,000
Actual activity level		27,400	machine-hours

The predetermined overhead rate per machine-hour would be closest to:

Multiple Choice

$17.77

$19.49

$16.23

$17.80