Mitchell Softball Gloves Company estimated the following at the beginning of the year: QUESTION 4 Testing Department Total 1 Top To provide man Assembly Department $570,000 142,500 $130,000 32,500 $700,000 175,000 ON Overhead Direct Labour Hours Machine Hours 32,000 65,000 97,000 Mitchell uses departmental overhead rates. In the assembly department, direct labour hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Testing Department Total Actual data for August is as follows: Assembly Department Overhead $42,000 Direct Labour 13,500 Hours Machine Hours 4020 $12,000 2430 $54,000 15,930 11,000 If Mitchell uses a plantwide overhead rate based on direct labour hours, instead of departmental rates, what is the predetermined overhead rate rounded to the nearest cent? a $7.22 per machine hour $2.57 per direct labour hour 84 per direct labour hour