Sunland Co.designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are made of white cak wood. The company's budgeted manufacturing overhead costs for 2022 are as follows: Amount $68,000 80,000 216,000 Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities 95,000 91,000 129,000 180,000 Total budget overhead costs $859,000 For the past four years, Sunland has been charging overhead to products on the basis of machine hours. For 2022, it has budgeted 100,000 machine hours. Edward Lewis, owner-manager of Sunland, recently directed her accountant, Ruth Lee, to implement the activity-based costing system that she has repeatedly proposed. At Edward's request, Ruth and the production foreperson identify the following cost drivers and their usage for the previously budgeted overhead cost pools. Activity Cost Pools Estimated Use of Cost Drivers Cost Drivers Number of orders 800 Purchasing Handling materials Number of moves 8,000 Direct labour hours 100,000 Production (cutting, milling, finishing) Setting up machines 1,250 Number of set-ups Number of inspections Inspecting 7,000 Inventory control (raw materials and finished goods) Utilities Number of components 172.000 Square metres occupied 10,000 Anthony Dion, sales manager, has received an order for 280 stairways from Page Builders Inc, a large housing development contractor. At Anthony's request, Ruth prepares cost estimates for producing components for 220 stairways so Anthony can submit a contract price per staircase to Page Builders. She accumulates the following data for the production of 280 stairways: $103,600 112,000 14,500 Direct materials Direct labour Machine hours Direct labour hours Number of purchase orders Number of material moves 5,000 60 B00 100 Number of machine set-ups Number of inspections 450 Number of components 16,000 Number of square metres occupied BOO Calculate the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, e.g. 15.25.) Predetermined overhead rate $ per machine hour