Keeran Corporation estimates that its variable manufacturing overhead is $5.20 per machine-hour and its fixed manufacturing overhead is $242,048 per period.

If the denominator level of activity is 6,100 machine-hours, the predetermined overhead rate would be:

Multiple Choice

• $5.20 per machine-hour

• $44.24 per machine-hour

• $44.88 per machine-hour

• $39.68 per machine-hour