Dearden Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $144,000, variable manufacturing overhead of $2.00 per machine-hour, and 60,000 machine-hours.

The predetermined overhead rate is closest to:

$6.40 per machine-hour

$4.40 per machine-hour

$2.40 per machine-hour

$2.00 per machine-hour