Oscar,Inc ,A Manufacturer of Gift Articles,uses a Single Plantwide Rate

Multiple Choice

Oscar,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 $5,000,000.Estimated machine hours are 40,000.During the year,the actual machine hours used were 45,000.Calculate the predetermined overhead allocation rate.(Round your answer to the nearest dollar. )

A) $111
B) $91
C) $125
D) $63