Your Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year:

	Direct materials.........................................	$1,000
	Direct labor................................................	$3,000
	Sales commissions.....................................	$4,000
	Salary of production supervisor................	$2,000
	Indirect materials.......................................	$400
	Advertising expense..................................	$800
	Rent on factory equipment........................	$1,000

Your Company estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year. What is the predetermined overhead rate for the

year?