Landon Corporation wants to develop a single default overhead rate. The company's expected annual fixed overhead cost is $340,000, and its variable overhead cost per machine hour is $2. The company's relevant range is 200,000 to 600,000 machine hours. Landon expects to operate at 425,000 machine hours next year. The theoretical capacity of the plant is 850,000. 

Calculate the default overhead rate per machine hour.