Mossholder Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year. Estimated total fixed manufacturing $310.000 overhead from the beginning of the year Estimated activity level from the beginning of 20,000 machine-hours the year Actual total fixed manufacturing overhead Actual activity level $338.000 18.300 machine-hours The predetermined overhead rate is closest to: $18.47 $16.94 $15.50 $16.90