A furniture manufacturer uses a standard costing system in which standard machine-hours (MHS) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: 3,400 MHS Denominator level of activity Overhead costs at the denominator activity level: Variable overhead cost Fixed overhead cost $38,830 $39,370 The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost 3,300 MHS 3,440 MHS $31,440 $ 40,560 The predetermined overhead rate is closest to: The predetermined overhead rate is closest to: Multiple Choice $21.18 per hour $21.82 per hour $23.70 per hour $23.00 per hour