Figure 6

The following information was gathered for the Milestone Company for the year. The annual flexible overhead budget is expected to be $150,000 of fixed costs and $5 per machine hour. The budgeted number of machine hours for the coming year is 30,000. Actual machine hours incurred equal 28,000 hours, and actual overhead cost total $295,000.

28. Refer to Figure 6. The predetermined overhead rate is

a

$10.54

b

$10.71

c

$9.83

d

$5.00

e

$10.00