X Company manufactures custom cabinets. Direct materials (wood, hinges, etc) and direct labor are assigned directly to the products. Manufacturing overhead is assigned to jobs using a predetermined overhead rate based on machine hours.

Compute the predetermined Manufacturing overhead rate per machine hour for 2015.

Cost (Item)	2014 Actual	2015 Estimated	2015 Actual
Machine hours	8,500	10,000	10,500
Machine Repairs	$184,500	$200,000	$209,000
Factory Supervisor Salary	$60,000	$60,000	$60,000
Oil for machines	$2,100	$2,000	$2,050
Advertising	$42,000	$45,000	$45,500
Depreciation-Machines	$10,000	$10,000	$10,000
Sales Commissions	$35,000	$40,000	$41,000
Factory Utilities	$32,000	$28,000	$25,500