FIN Question 3

Smith Paints allocates overhead based on machine hours. Selected data for the most recent year follow.

Estimated manufacturing overhead cost	$250,000
Actual manufacturing overhead cost	$230,000
Estimated machine hours	20,000
Actual machine hours	21,000

The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to:

		$10.95.
		$12.50.
		$11.50.
		$11.90.