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:

Direct materials $ $20,000$

Direct labor $ $60,000$

Sales commissions $ $80,000$

Salary of production supervisor $ $40,000$

Indirect materials $ $8,000$

Advertising expense $ $16,000$

Rent on factory equipment $ $20,000$

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: