Paulson Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year: Direct materials 25,000 Direct Labour 22,000 Advertising expense 15,000 Rent on factory building 13,500 Depreciation on factory equipment 6,500 Indirect materials 10,000 Sales salaries 28,000 Insurance on factory equipment 12,000 Paulson estimated that 40,000 direct Labour hours and 20,000 machine hours would be worked during the year. The predetermined overhead rate per machine hour will be: Multiple Choice 1.00. 1.05. 2.10. 1.60.