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: 1,500 MHs Denominator level of activity Overhead costs at the denominator activity level: Variable overhead cost Fixed overhead cost $ 13,280 $ 18, 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 1,400 MHS 1,540 MHs $ 12,440 $ 19,560 The predetermined overhead rate is closest to: Multiple Choice $22.61 per hour $21.33 per hour $22.86 per hour $21.10 per hour