MC Ques: Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:

Estimated machine-hours		72,600
Estimated variable manufacturing overhead	$	3.00	per machine-hour
Estimated total fixed manufacturing overhead	$	838,770

The predetermined overhead rate for the recently completed year was closest to:

• $8.66 per machine-hour

• $6.87 per machine-hour

• $14.55 per machine-hour

• $9.00 per machine-hour