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Caines Company has the following estimated costs for next year:Direct materials $80,000Indirect materials 8,000Rent on factory equipment 20,000Direct labor 35,000Salary of production supervisor 60,000Sales commissions 25,000Depreciation on factory building 50,000Advertising expense 40,000Factory utilities 10,000Caines estimates that 10,000 machine hours will be worked during the year. The overhead rate per machinehour will be (Hint: Choose which of the above costs are Overhead costs, add them together, and divide the total by 10,000):
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