Tom Anderson uses machine hours as the cost allocation driver for allocating manufacturing overhead costs. For the next year, the budget shows the following information: Budgeted machine hours Budgeted variable manufacturing overhead 72,200 $3.50per machine hour $838,710 Budgeted fixed manufacturing overhead The predetermined manufacturing overhead rate for the next year is closest to: A. $15.12 B. $8.12 c. $10.62 D. $11.62 E. $3.50