Your company produces two non-dairy milk products: soy and almond. The products are produced in large 1,000-gallon batches using a highly automated process. Therefore, the company uses machine hours as its activity driver to assign overhead costs. Assume almond milk requires 3 machine hours per batch and soymilk requires 2 machine-hours per batch. Suppose for July 232 batches of almond milk and 400 batches of soymilk were produced, and total manufacturing overhead was $187,000.

Based on the information above, what is the predetermined overhead rate per machine hour? Show your calculations.

A. $296

B. $187

C. $632

D. $125