Kelsh Company has the following estimated costs for next year:

Direct materials$80,000

Indirect materials8,000

Rent on factory equipment20,000

Direct labor35,000

Salary of production supervisor60,000

Sales commissions25,000

Depreciation on factory equipment50,000

Advertising expense40,000

Factory utilities10,000

Kelsh estimates that 10,000 machine hours will be worked during the year. The overhead rate per machine

hour will be (Hint: Choose which of the above costs are Overhead costs, add them together, and divide the total by 10,000):