Salmon Company uses a pre-determined overhead rate based on machine

hours to apply overhead costs to jobs. At the beginning of 2019,

the company estimated the following costs would be incurred:

direct materials ................... $ 70,000

direct labor ....................... 90,000

advertising expense ................ 20,000

utilities .......................... 16,000

rent on factory building ........... 35,000

maintenance on factory equipment ... 29,000

depreciation on factory equipment .. 12,000

indirect materials ................. 25,000

sales commissions .................. 39,000

production supervisor's salary ..... 41,000

70% of the utilities relate to the factory while 30% of the utilities

relate to the administrative office buildings.

Salmon Company estimates that 8,000 machine hours will be used during

2019.

Calculate Salmon Company's pre-determined overhead rate based on machine

hours.

Enter your answer as a number with two places after the decimal point

(i.e., 12.89). Carmen may convert this to three places after the decimal

point, which is fine.