Question 23 (4 points) Ch. 2 - Manufacturing for Markk, Inc has two manufacturing departments, Molding and Drying. Markk, like most manufacturing companies uses a job-order costing system and estimated a predetermined overhead rate in for each department. The Molding Department's predetermined overhead rate is based on machine-hours and the Drying Department's predetermined overhead rate is based on direct labor- hours. At the beginning of the current year, the company had made the following estimates: Molding Drying Machine-hours 16,000 12,000 Direct labor-hours 2,000 8,000 Total fixed manufacturing overhead cost $ 118,400 $ 87,200 Variable manufacturing overhead per machine-hour $ 2.10 Variable manufacturing overhead per direct labor-hour $ 3.30 The Molding Department's predetermined overhead rate is closest to: $19.00 per machine-hour $2.10 per machine-hour $9.50 per machine-hour $7.40 per machine-hour