Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $825,000 and machine hours would total 27,500. By 20x1 year-end, actual overhead totaled $856,700, and actual machine hours were 31,700. On the basis of this information, the 20x1 predetermined overhead rate was:

a. $5.05 per machine hour.

b. $26 per machine hour.

c. $25 per machine hour.

d. $5.04 per machine hour.

e. $30 per machine hour.