Smith Paints allocates overhead based on machine

hours. Selected data for the most recent year follow.

Estimated

manufacturing overhead cost $$150,000$

Actual

manufacturing overhead cost $$130,000$

Estimated

machine hours $25,000$

Actual

machine hours $22,500$

the estimates were made as of the

beginning of the year, while the actual results were for the entire year.

At Smith Paints the predetermined manufacturing overhead rate per machine hour is closest to

$$6\mathrm{.}00.$

$$6\mathrm{.}30.$

$$7\mathrm{.}25.$

$$7\mathrm{.}33.$

At Smith Paints the amount of manufacturing overhead allocated for the year based on machine hours would have been

$$130,000.$

$$150,000.$

$$135,000.$

$$132,500.$