Carlson Company Uses a Predetermined Rate to Apply Overhead

Multiple Choice

Carlson Company uses a predetermined rate to apply overhead.At the beginning of the year,Carlson estimated its overhead costs at $240,000,direct labour hours at 40,000,and machine hours at 10,000.Actual overhead costs incurred were $249,280,actual direct labour hours were 41,000,and actual machine hours were 11,000. What is the predetermined overhead rate per machine hour for Carlson?

A) $5.85
B) $6.08
C) $22.66
D) $24.00