Oltman Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year:

Direct materials	$25,000
Direct labor	$22,000
Advertising expense	$15,000
Rent on factory building	$13,500
Sales salaries	$28,000
Depreciation on factory equipment	$6,500
Indirect materials	$10,000
Insurance on factory equipment	$12,000

Oltman estimated that 40,000 direct labor-hours and 20,000 machine-hours would be worked during the year. The predetermined overhead rate per machine-hour will be:

Group of answer choices

$1.05 per machine hour

$1.00 per machine hour

$2.10 per machine hour

$1.60 per machine hour

Madayag Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:

	Average cost per unit
Direct materials	$5.20
Direct labor	$3.75
Variable manufacturing overhead	$1.65
Fixed manufacturing overhead	$2.60
Fixed selling expense	$0.50
Fixed administrative expense	$0.40
Sales commission expense	$1.50
Variable administrative expense	$0.50

If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Group of answer choices

$63,600

$79,200

$62,700

$53,700