Treasurers,Inc

Multiple Choice

Treasurers,Inc.,a manufacturer of gift articles,uses a single plantwide rate to allocate indirect costs with machine hours as the allocation base.Estimated overhead costs for the year are $6,000,000.Estimated machine hours are 29,000.During the year,the actual machine hours used were 50,000.Calculate the predetermined overhead allocation rate.(Round your answer to the nearest dollar.)

A) $120
B) $88
C) $207
D) $63