Answer:
c) $2.40 per machine-hour
Explanation:
The manufacturing overhead cost is made up of both a fixed and a variable elements.
The total manufactured overhead cost is usually a function of a direct cost such as direct machine hours , direct labour hours, direct raw material cost per unit etc.
Given that total fixed manufacturing overhead cost is $144,000 and there are 60,000 machine-hours
The predetermined overhead rate is closest to
= $144,000/60,000
= $2.40 per machine hour