Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine hours. At the beginning of the year, it estimated total manufacturing overhead costs to be $1,050,000, total number of direct labor hours to be 4000, and total number of machine hours to be 20,000 hours. What was the predetermined overhead allocation rate? (Round your answer to the nearest cent.)
A) $262.50 per machine hour
B) $43.75 per direct labor hour
C) $52.50 per machine hour
D) $65.63 per direct labor hour
C) $52.50 per machine hour
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