Help Save & Exit The management of Featheringham Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 50,800 machine-hours. Capacity is 63,800 machine-hours and the actual level of activity for the year is assumed to be 47,800 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $2,837,186 per year. It is assumed that a number of jobs were worked on during the year, one of which was Job Z77W which required 680 machine-hours. If the company bases its predetermined overhead rate on capacity, then the predetermined overhead rate is closest to Multiple Choice O $5373 per machine-hour O $44.47 per machine-hour