Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 35,500 machine-hours. The estimated variable manufacturing overhead was $5.36 per machine-hour and the estimated total fixed manufacturing overhead was $1,017,075. The predetermined overhead rate for the recently completed year was closest to:

Multiple Choice

• $34.01 per machine-hour

• $33.01 per machine-hour

• $5.36 per machine-hour

• $28.65 per machine-hour