Osborne Ltd Manufactures a Wide Range of Leather Suitcases -Refer to the Table Above

Osborne Ltd manufactures a wide range of leather suitcases. The following costs are expected to be incurred by the company during May: $$\begin{array} { l r } \text { Indirect labour cost } & \$ 28,000 \\\text { Direct labour time } & 10,000 \text { hours } \\\text { Depreciation on equipment } & \$ 20,000 \\\text { Rent and Rates } & \$ 13,000 \\\text { Direct labour costs } & \$ 98,000 \\\text { Heating, lighting and power } & \$ 4,000 \\\text { Machine time } & 8,000 \text { hours } \\\text { Indirect materials } & \$ 5,000 \\\text { Consumables } & \$ 2,000 \\\text { Direct materials used } & \$ 50,000 \\\text { Production estimate } & 1,000 \text { suitcases }\end{array}$$
-Refer to the table above.The management accountant at Osborne Ltd,wants to revise his estimates and use machine hours as the allocation base to determine the overhead recovery rate.The revised overhead recovery rate (rounded) per machine hour will be:

A) $4.88 per MH.
B) $9.00 per MH.
C) $7.38 per MH.
D) $8.75 per MH.