Moon Company has two production departments Cutting and Painting The Cutting Department applies manufacturing overhead based on direct lobor hours which are estimated to toe 45.000 for the period The Painting Department applies manufacturing overhead based on machine hours which are estimated to total 80.000 for the period. Information related to estimated overhead costs for each of departments is presented below. Cutting Department Painting Department Total fixed manufacturing overhead 590,000 $40.000 Vorable manufacturing overhead per direct labor hour $2.50 Variable manufacturing overhead per machine hour $3.00 The predetermined overhead rate the painting Department will use to apply manufacturing overhead to jobs is closest to $3.00 per machine hour $5.00 per machine hour o $3.50 per machine hour $200 per machine hour OD