Assume you own a manufacturing company that budgets an estimated $500,000 in overhead for the upcoming year.

The company is highly automated and estimates that 20,000 machine hours will be logged during the year. During the year, 19,500 actual machine hours were logged.

Calculate the predetermined overhead rate and applied overhead for the year.

Group of answer choices

$25/machine hour; $487,500

$25.64/machine hour; $512,820

$25/machine hour; $512,820

$25.64/machine hour; $487,500