Oscar, Inc, a manufacturer of gift articles, uses a single plantwide rate to allocate indirect costs with machine hours as the allocation base

Estimated overhead costs for the year are $5,000,000. Estimated machine hours are 40,000. During the year, the actual machine hours used were 45,000. Calculate the predetermined overhead allocation rate. (Round your answer to the nearest dollar.)
A) $111
B) $91
C) $125
D) $63

C .C)
Calculation of single plantwide allocation rate:
Estimated overhead cost for the year $5,000,000
Estimated machine hours for the year 40,000
Single plantwide rate ($5,000,000 / 40,000 ) $125