Question 2 A8b Company applies overhead to production on the basis of machine hours. A8b Company had the following estimated costs for 2021: Direct materials Direct labor Advertising expense Rent on factory building Depreciation on factory equipment Indirect materials Sales commissions Production supervisor's salary $48,000 39,000 14,000 26,000 16,000 24,000 33,000 30,000 --- ---- A8b Company estimates that 20,000 machine hours will be used during 2021. A8b Company's pre-determined overhead rate based on machine hours for 2021 was equal to: $5.50 per machine hour $4.80 per machine hour $7.15 per machine hour $4.00 per machine hour $3.30 per machine hour $4.35 per machine hour $2.10 per machine hour