PGiven the Term Structure below:

$1$ year $=3\mathrm{.}3\%$

$2$ years $=4\mathrm{.}8\%$

$3$ years $=5\mathrm{.}8\%$

$4$ years $=6\mathrm{.}9\%$

$5$ years $=7\mathrm{.}7\%$

Based on the expectations hypothesis, what does the market expect the $1$ year rate in $4$ year to be$?$

Budgeted MOH $ $70,800$

Budgeted machine hours $29,500$

Budgeted direct labor hours $7,375$

Cost Pool Total Cost Allocation base

Machine$-$related MOH $ $44,250$ Machine hour

Labor$-$related MOH $ $26,550$ Direct labor hour

Total $ $70,800$

One batch of Pumpkin Moon Ale uses $5$ machine hours and $2\mathrm{.}1$ direct labor hours.