Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:

Estimated machine-hours 72,400

Estimated variable manufacturing overhead $ 3.50 per machine-hour

Estimated total fixed manufacturing overhead $ 838,720

The predetermined overhead rate for the recently completed year was closest to:

Multiple Choice

$10.50 per machine-hour

$8.63 per machine-hour

$6.63 per machine-hour

$15.08 per machine-hour