Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Steele Corporation has provided the following estimated costs for next year: 
Steele estimates that 10,000 direct labor-hours and 16,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:
Definitions:
Deforested
Areas that have been cleared of trees and converted to non-forest use.
Extraction Cost
All costs associated with extracting a natural resource and readying it for sale.
User Cost
The opportunity cost of using a durable good, which includes the depreciation of the good and any cost associated with its use, such as maintenance.
Enforceable Property Rights
The legal recognition of an individual's or entity's claims to ownership, which can be defended and upheld in court.
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