The management of Blue Ocean Company estimates that 50,000 machine-hours will be required to support the production planned for the year. It also estimates $300,000 of total fixed manufacturing overhead cost for the coming year and $4 of variable manufacturing overhead cost per machine-hour. What is the predetermined overhead rate?
- $6.00 per machine hour.
- $8.00 per machine hour.
- $10.00 per machine hour.
- $12.50 per machine hour.
$10.00 per machine hour.