Copr. Goedl

Infinity LLC$.$ uses a job order costing system. Below are estimates related to manufacturing overhead.

$20,000$ labor hours

$1,200$ machine hours

$$48,000$ fixed overhead

$$6$ variable overhead per machine hour

Assume that the predetermined manufacturing overhead rate is applied based on machine hours. The predetermined manufacturing overhead rate is:

$$6\mathrm{.}00$

$$46\mathrm{.}00$

$$2\mathrm{.}76$

$$8\mathrm{.}40$