Caple Corporation Applies Manufacturing Overhead on the Basis of Machine-Hours

Multiple Choice

Caple Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $16,660. Actual manufacturing overhead for the year amounted to $25,000 and actual machine-hours were 1,460. The company's predetermined overhead rate for the year was $11.90 per machine-hour.
-The predetermined overhead rate was based on how many estimated machine-hours?

A) 1,400
B) 2,101
C) 2,742
D) 1,460