Oriole Co$.$ designs and builds factory$-$made premium wooden stairways for homes. The manufactured stairway components $($spindles$,$ risers, hangers, hand

rails$)$ permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year $2020$ are as

follows.

For the last $4$ years, Oriole $Co,$ has been charging overhead to products on the basis of machine hours. For the year $2020,100,000$ machine hours are budgeted.

Jeremy Nolan, owner$-$manager of Oriole Co$,$ recently directed his accountant, Bill Seagren, to implement the activity$-$based costing system that he has

cverhead cost pools.

Steve Hannon, sales manager, has received an order for $250$ stairways from Community Builders, Inc., a large housing development contractor. At Steve's

request, Bill prepares cost estimates for producing components for $250$ stairways so Steve can submit a contract price per stairway to Community Builders. He

accumulates the following data for the production of $250$ stainways.

Compute the predetermined overhead rate using traditional costing with machine hours as the basis. $($Round answer to $2$ decimal ploces, eg$.12\mathrm{.}25.)$