Razorback Remedies produces a natural allergy treatment in tablet form. The company sells large containers of 1,000 tablets to university health centers and small containers of so tablets to health food stores. The company is considering adopting an activity-based costing system and the accountant gathered the following information: Activity Materials handling Estimated Indirect Cost $350,000 Cost Driver Pounds Packaging 500,000 Estimated Activity 58,000 pounds 8,000 hours 6,000 samples Quality control 250,000 Machine Hours Number of Samples Total Indirect costs $1,100,000 Other production Information follows: Large Containers Units produced 20.000 Weight in pounds 40,000 Machine hours 6,000 Number of samples 1,000 Small Containers 180,000 18,000 2.000 5,000 Question Razorback's current system allocates indirect cost to products on the basis of machine hours. Calculate the predetermined overhead application rate per machine hour. Please include step bystep ansuer