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Stones Corporation uses a predetermined overhead rate based on machine-hours to apply overhead to the manufacturing process. Last year, Stones incurred manufacturing overhead costs totaling $450,000 and used 100,000 machine-hours. This year, Stones estimated manufacturing overhead to be $550,000 and expected to incur 110,000 machine-hours. Stones actually incurred $575,000 of manufacturing overhead and incurred 120,000 machine-hours this year. What is the manufacturing overhead application rate?
A. $5.00 per machine-hour
B. $4.79 per machine-hour
C. $4.50 per machine-hour
D. $5.50 per machine-hour
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