TB MC Qu. 4-46 (Static) Predetermined overhead rate based on machine hours: Blue Sky Incorporated Blue Sky Incorporated listed the following data for the current year: Budgeted factory overhead Budgeted direct labor hours Budgeted machine hours Actual factory overhead Actual direct labor hours Actual machine hours $ 1,271,000 82,000 41,000 1,201,000 86,300 39,400 Assuming Blue Sky Incorporated applied overhead based on machine hours, the firm's predetermined overhead rat for the current year rounded to 2 decimal places is