Spring Corporation Bases Its Predetermined Overhead Rate on the Estimated

Multiple Choice

Spring Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the upcoming year appear below: The predetermined overhead rate for the recently completed year was closest to:
$$\begin{array} { | l | r | l | } \hline \text { Estimated machine-hours } & 70,000 & \\\hline \text { Estimated variable } & \$ 6.68 & \begin{array} { l } \text { per machine } \\\text { hour }\end{array} \\\text { manufacturing overhead } & & \\\hline \begin{array} { l } \text { Estimated total fixed } \\\text { manufacturing overhead }\end{array} & \$ 1,283,800 & \\\hline\end{array}$$

A) $6.68.
B) $25.02.
C) $25.59.
D) $18.34.