the answer choices are

$1.34 per machine-hour

$1.51 per machine-hour

$1.20 per machine-hour

$1.41 per machine-hour

The mamagement of Bullinget Corporaton would like to investigate the possibility of basing its predetermined overheaditate on activity at capacity. The company's controller has provided an example fo illustrate how this new system would work. In this example, the allocation base is machine hours and the estinated amount of the allocaton base for the upcoming year is 26,000 machine hours. Capacity is 29,000 machine hours and the actual level of activity for the year is assumed to be 24700 machine hours. All of the manufacturing overhead is foxed and both the ostlimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $34.840 per yeac. For simplicity, it is assumed that this is the estimated manufacturing oveithead for the year as weil as the manufacturing overhead at capacity. it is further assumed that this is akso the actuat amount of manufacturing overhead for the year. If the company bases its predetermined overhead rate on the estimated amount of the allocation base for the upcoming year, then the predetentined overhead rate is closest to