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 2,900 MHs Overhead costs at the denominator activity level: Variable overhead cost $ 30,880 Fixed overhead cost $ 34,370 The following data pertain to operations for the most recent period: Actual hours 2,800 MHs Standard hours allowed for the actual output 2,940 MHs Actual total variable manufacturing overhead cost $ 26,440 Actual total fixed manufacturing overhead cost $ 35,560 The predetermined overhead rate is closest to: