Sutherland Company Listed the Following Data for 2019 Assuming Sutherland Applied Overhead Based on Machine Hours, the Company's

Sutherland Company listed the following data for 2019: $\begin{array}{lr}\text { Budgeted factory overhead } & \$ 2,100,000 \\\text { Budgeted direct labor hours } & 89,000 \\\text { Budgeted machine hours } & 51,000 \\\text { Actual factory overhead } & 2,201,000 \\\text { Actual direct labor hours } & 83,700 \\\text { Actual machine hours } & 48,900\end{array}$ Assuming Sutherland applied overhead based on machine hours, the company's predetermined overhead rate for 2019 is (round to two significant digits) :

A) $44.00 per machine hour.
B) $41.98 per machine hour.
C) $38.31 per machine hour.
D) $35.90 per machine hour.
E) $41.18 per machine hour.

Correct Answer:

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