Horton Industries Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to products. The company has provided the following estimated costs for next year:

Direct materials	$	10,800
Direct labor	$	30,800
Sales commissions	$	41,600
Salary of production supervisor	$	21,350
Indirect materials	$	5,350
Advertising expense	$	8,800
Rent on factory equipment	$	11,800

Horton estimates that 5,000 direct labor-hours and 10,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:

rev: 08_15_2019_QC_CS-174994

Multiple Choice

• $7.70.

• $7.22.

• $3.85.

• $9.28.