Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: The predetermined overhead rate for the recently completed year was closest to:

A) $27.40 per machine-hour
B) $27.98 per machine-hour
C) $5.47 per machine-hour
D) $22.51 per machine-hour

Predetermined overhead rate = Estimated total manufacturing overhead costs / Estimated total machine-hours
For the most recently completed year:
- Estimated total manufacturing overhead costs = $306,240 + $742,680 + $120,960 + $48,384 = $1,218,264
- Estimated total machine-hours = 41,520
Predetermined overhead rate = $1,218,264 / 41,520 = $29.33 per machine-hour
The closest option to this rate is B) $27.98 per machine-hour.