If Duffy Company Budgets Total Overhead Costs for the Next

If Duffy Company budgets total overhead costs for the next year of $40,000 and anticipates using machine hours as the overhead allocation base, which of the following statements is true?

A) If Duffy Company expects to use 60,000 machine hours, the predetermined overhead rate is $1.50 per machine hour.
B) If Duffy Company expects to use 160,000 machine hours, the predetermined overhead rate is $4.00 per machine hour.
C) If Duffy Company expects to use 80,000 machine hours, the predetermined overhead rate is $0.50 per machine hour.
D) None of these answer choices are true