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	2,400 MHs
Overhead costs at the denominator activity level:
Variable overhead cost	$ 25,430
Fixed overhead cost	$ 27,370

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

Actual hours	2,300 MHs
Standard hours allowed for the actual output	2,440 MHs
Actual total variable manufacturing overhead cost	$ 21,440
Actual total fixed manufacturing overhead cost	$ 28,560

The predetermined overhead rate is closest to:

Multiple Choice

$22.00 per hour

$20.83 per hour

$21.74 per hour

$22.96 per hour