The Anderson Company forecasts that total overhead for the current year will be $15,000,000 and total machine hours will be 200,000 hours. However, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the company uses a predetermined overhead rate based on machine hours for applying overhead, what is predetermined overhead rate?

Select one:

a. $80 per machine hour

b. $150 per machine hour

c. $75 per machine hour

d. $40 per machine hour