Answer:
B)$4.25
Explanation:
Predetermined Overhead rate = Estimated Manufacturing overhead / Estimated Machine hours
Predetermined Overhead rate = $68,000 / 16,000 =$4.25 per unit
Machine-hours 16,000
Manufacturing Overhead:
Salary of production supervisor $40,000
Indirect material $8,000
Rent on factory equipment $20,000
Total Manufacturing overhead $68,000