Carlos Industries uses job order costing and assigns overhead to specific jobs using machine hours. At the beginning of the current year, estimated overhead costs were $500,000 and estimated hours were 25,000. During the year, 40,000 machine hours were actually used. By the end of the year, actual overhead costs were calculated to be $640,000. What was the predetermined overhead rate?

$12.50 per machine hour

$20.00 per machine hour

$25.60 per machine hour

$16.00 per machine hour