Infotrac Inc. sells a high-speed retrieval system for information. It provides the following information for the year.

Budgeted Actual

Overhead cost $1,205,040 $958,960

Machine hours 50,210 41,250

Direct labour hrs 152,530 90,300

Overhead is applied on the basis of machine hours.

Calculate the predetermined overhead rate.

Predetermined overhead rate $a)_____________ per machine hour

Determine the amount of overhead applied for the year.

Amount of overhead applied $b)_________________