Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $520,000 and machine hours would total 20,000. By 20x1 year-end, actual overhead totaled $548,600, and actual machine hours were 28,600. On the basis of this information, the 20x1 predetermined overhead rate was: $1.04 per machine hour. $26 per machine hour. $21 per machine hour. $1.05 per machine hour. $22 per machine hour