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

Estimates made at the beginning of the year:
Estimated machine-hours		43,000
Estimated variable manufacturing overhead	$	6.92	per machine-hour
Estimated total fixed manufacturing overhead	$	1,090,050
Actual machine-hours for the year		40,900

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

Multiple Choice

• $31.93 per machine-hour

• $32.27 per machine-hour

• $6.92 per machine-hour

• $25.35 per machine-hour