Answer:
Correct answer is Option A = $67
Explanation:
In order to find out the predetermined overhead rate, forecasted overhead for the current year will be taken into account alongwith total machine hours of that has been forecasted for the current year.
Formula for calculation
Predetermined overhead rate = Forecasted Overhead for the year / Total Machine hours
Forecasted Overhead for the year = $11938000
Total Machine hours = 177000
Predetermined overhead rate = 11938000/177000 = $67 ( Rounded off )