Kisler Incorporated makes a single producta cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

Total budgeted manufacturing overhead	$	70,035
Budgeted production		15,000	units
Standard hours per unit (b)		0.70	machine-hours
Budgeted hours (a) (b)		10,500	machine-hours
Actual production (a)		14,000	units
Standard hours per unit (b)		0.70	machine-hours
Standard hours allowed for the actual production (a) (b)		9,800	machine-hours
Total actual manufacturing overhead	$	97,489
The predetermined overhead rate is closest to: