Fish Factory estimates that it will use 15,000 machine hours in March 2021 to meet its production needs. Fixed costs for Fish Factory are estimated to be $18,000 and variable costs are estimated to be $2 per machine hour. What is the predetermined overhead rate for Fish Factory?

• A. $5.20 per machine hour
• B. $0.31 per machine hour
• C. $3.20 per machine hour
• D. $2 per machine hour