1.Aztec Builders allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming year:

Direct materials used

$23,000

Direct labour costs

$61,000

Salary of factory supervisor

$33,000

Advertising expense

$50,000

Heating and lighting costs for factory

$33,000

Depreciation on factory equipment

$134,000

Sales commissions

$50,000

The firm estimates that 2,000 direct labour hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year. The predetermined indirect allocation rate per machine hour is closest to

a.$100.

b.$150.

c.$200.

d.$300.

e.$250.