At the beginning 2023, Tiger Sportswear Production Company budgeted its MOH costs at 4 different capacity level as follows: For Capacity Levels (in mh); 1,000 mh, 2,000 mh, 3,000 mh, and 4,000 mh; Indirect Materials ($) is expected to be $2,000, $4,000, $6,000, and $8,000; Depreciation ($) $7,000, $7,000, $7,000, and $7,000; Energy ($) $8,000, $11,000, $14,000, and $17,000, respectively. What is the Applied Manufacturing Overhead Rate (predetermined MOH Rate) if the budgeted capacity is 2,500 mh?

A. $12.5/mh

B. None of these.

C. $12.0/mh

D. $9.5/mh

E. $9.8/mh