Kiker Incorporated has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted variable manufacturing overhead $ 112,000 Budgeted fixed manufacturing overhead 311.920 Total budgeted manufacturing overhead $ 423,920 Budgeted production Standard hours per unit Budgeted hours Actual Production Actual hours 35,000 units 1.60 machine-hours 56,000 machine-hours 31,00 units 50,000 machine hours The predetermined overhead rate is closest to: $12.11 per machine-hour $7.57 per machine-hour