Botany Bay Boatbuilders uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labour-hours in the Assembly Department. At the beginning of 2010, the following estimates were provided for the coming year:

MachiningAssembly

Direct labour-hours30 00060 000

Machine-hours80 00020 000

Direct labour cost$500 000$900 000

Manufacturing overhead costs$420 000$240 000

The accounting records of the company show the following data for Job #316:

MachiningAssembly

Direct labour-hours12070

Machine-hours605

Direct material cost$300$200

Direct labour cost$100$400

For Botany Bay Boatbuilders, what is the annual manufacturing overhead cost-allocation rate for the Machining Department?

A.$4.00

B.$4.67

C.$4.20

D.$5.25