Sunoco Corporation uses machine-hours as its allocation base to apply manufacturing overhead to jobs. Sunoco has provided the following estimated costs for next year: Direct materials Direct labor Sales commissions Salary of production supervisor Indirect materials Advertising expense Rent on factory equipment $ 1,000 $ 3,000 $ 4,000 $ 2,000 400 $ 800 $ 1,000 Sunoco estimates that 1000 direct labor-hours and 500 machine-hours will be worked during the year. The predetermined overhead rate per hour will be: $6.00 per machine-hour O O O O $3.40 per machine-hour $3.00 per machine-hour $6.80 per machine-hour