Horton Industries Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to products. The company has provided the following estimated costs for next year:

Direct materials	$	10,500
Direct labor	$	30,500
Sales commissions	$	41,000
Salary of production supervisor	$	20,900
Indirect materials	$	4,900
Advertising expense	$	8,500
Rent on factory equipment	$	11,200

Horton estimates that 5,000 direct labor-hours and 10,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be: