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		40,100
Estimated variable manufacturing overhead	$	6.56	per machine-hour
Estimated total fixed manufacturing overhead	$	843,303
Actual machine-hours for the year		38,100

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

Multiple Choice

• $27.26 per machine-hour

• $27.59 per machine-hour

• $6.56 per machine-hour

• $21.03 per machine-hour