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:

Denominator level of activity	2,300	MHs
Overhead costs at the denominator activity level:
Variable overhead cost	$ 24,000
Fixed overhead cost	$ 26,370

The following data pertain to operations for the most recent period:

Actual hours	2,200	MHs
Standard hours allowed for the actual output	2,340	MHs
Actual total variable manufacturing overhead cost	$ 20,440
Actual total fixed manufacturing overhead cost	$ 27,560

The predetermined overhead rate is closest to:

Multiple Choice

• $21.90 per hour

• $22.90 per hour

• $20.87 per hour

• $21.82 per hour