Question 48 Reference: 05-11 (Appendix SA) Secrease Corporation uses machine-hours as the allocation base for applying its manufacturing averhead. Estimated manufacturing overhead cost for the year $594,000 Capacity 110,000 machine-hours Estimated amount of the allocation base for the year 108,000 machine hours Amount of the allocation base for the actual output of the 88,000 machine-hours year Actual manufacturing overhead cost for the year $589,000 All of the company's manufacturing overhead is fixed. (Appendix 5A) What is the predetermined overhead rate based on capacity to 2 decimal places? $6.69 $5.35 $5.40 D$5.50