Overhead Absorption Rate Calculation Steps:

• Identify machining fixed overheads: $150,000.
• Determine absorption base for machining: machine hours worked, 3,000.
• Apply formula: rate = total overheads ÷ machine hours.
• Compute: $150,000 ÷ 3,000 =$50 per machine hour.

Why C is correct:

• Overhead absorption rate equals total fixed overheads divided by the relevant activity base (machine hours for machining department).

Why the others are wrong:

• A: Uses assembly machine hours (6,000) with machining overheads ($150,000 ÷ 6,000 ≈$25, close but incorrect base).
• B: Divides total overheads ($210,000) by total machine hours (9,000) for blended rate ($23.33, misapplied).

Final answer: C