Spring 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		71,300
Estimated variable manufacturing overhead	$	8.63	per machine-hour
Estimated total fixed manufacturing overhead	$	1,307,642

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

Multiple Choice

• $26.97.

• $27.54.

• $19.77.

• $8.63.