Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $24,500 and the ending balance was $45,000. Raw materials purchases during the month totaled $72,000. Manufacturing overhead cost incurred during the month was $115,500, of which $2,900 consisted of raw materials classified as indirect materials. The direct materials cost for May was:

• $92,500

• $72,000

• $51,500

• $48,600

Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:

Estimated machine-hours		72,300
Estimated variable manufacturing overhead	$	3.20	per machine-hour
Estimated total fixed manufacturing overhead	$	838,800

The predetermined overhead rate for the recently completed year was closest to:

Multiple Choice

• $6.76 per machine-hour

• $9.60 per machine-hour

• $14.80 per machine-hour

• $8.62 per machine-hour