James Ltd. absorbs manufacturing overhead using a predetermined machine hour rate. Relevant information for the quarter just ended is: Budgeted machine hours 130,000 Actual machine hours worked 120,000 Budgeted overhead cost 156,000 Actual overhead cost 187,200 1. What was the pre-determined overhead absorption rate per machine hour used to assign manufacturing overhead to products during the past quarter? (a) 1.20 (b) 1.30 (c) 1.44 (d) 1.56