Simplex Company has the following estimated costs for next year:

Direct materials	$15,000
Direct labor	$55,000
Sales commissions	$75,000
Salary of production supervisor	$35,000
Indirect materials	$5,000
Advertising expense	$11,000
Rent of factory equipment	$16,000

Simplex estimates that 10,000 direct labor and 16,000 machine-hours will be worked during the year. If overhead in applied on the basis of machine hours, the overhead rate per hour will be:

Note. Enter numbers only-- do not use a dollar sign ($) or comma.