Zercox Corporation Uses a Predetermined Rate to Apply Overhead

Multiple Choice

Zercox Corporation uses a predetermined rate to apply overhead. At the beginning of the year, Zercox estimated its overhead costs at $380,000, direct labor hours at 55,000, and machine hours at 25,000. Actual overhead costs incurred were $350,150, actual direct labor hours were 56,000, and actual machine hours were 26,000.
What is Zercox's predetermined overhead rate per machine hour? (Round the answer to two decimal places.)

A) $6.79
B) $14.62
C) $14.00
D) $15.20