Kelsh Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year: Direct materials Indirect materials Rent on factory Direct labour Marketing expenses Salary of CFO Property tax on factory $10,000 16,000 18,000 30,000 40,000 120,000 8,000 Kelsh estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year. What will be the predetermined overhead rate per hour? 1) $3.40. Direct labour Marketing expenses Salary of CFO Property tax on factory 30,000 40,000 120,000 8,000 Kelsh estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year. What will be the predetermined overhead rate per hour? 1) $3.40. 2) $2.00. 3) $4.20. 4) $7.20