Rutherford Wheel and Axle, Incorporated, has an automated production process, and production activity is quantified in terms of machine hours. A standard-costing system is used. The annual static budget for 20x1 called for 6,000 units to be produced, requiring 30,000 machine hours. The standard overhead rate for the year was computed using this planned level of production. The 20x1 manufacturing cost report follows. RUTHERFORD WHEEL AND AXLE, INCORPORATED Manufacturing Cost Report For 20x1 (in thousands of dollars) Flexible Budget 32,000 Static Budget 30,000 31,000 Machine Machine Machine Cost Item Direct material: G27 aluminum M14 steel alloy Hours Hours Hours Actual Cost $ 366.0 $ 378.2 $ 390.4 192.0 198.4 204.8 $ 391.6 197.0 Direct labor: Assembler 387.0 399.9 412.8 401.0 Grinder 348.0 359.6 371.2 364.0 Production overhead: Maintenance 138.0 142.6 147.2 139.0 Supplies 243.0 251.1 259.2 244.0 Supervision 194.0 120.0 198.0 195.0 Inspection 258.0 185.0 264.0 261.0 Insurance 164.0 164.0 164.0 164.0 Depreciation 314.0 314.0 314.0 314.0 Total cost $ 2,604.0 $ 2,512.8 $ 2,725.6 $ 2,670.6 Rutherford develops flexible budgets for different levels of activity for use in evaluating performance. A total of 6,200 units was produced during 20x1, requiring 32,000 machine hours. The preceding manufacturing cost report compares the company's actual cost for the year with the static budget and the flexible budget for two different activity levels. 3. Compute the cost of material that should be processed per machine hour. Standard direct-material cost per machine hour terms of machine hours. A standard-costing system is used. The annual static budget for 20×1 called for 6,000 units to be produced, requiring 30,000 machine hours. The standard overhead rate for the year was computed using this planned level of production. The 20x1 manufacturing cost report follows. RUTHERFORD WHEEL AND AXLE, INCORPORATED Manufacturing Cost Report For 20x1 (in thousands of dollars) Static Budget 30,000 Cost Item Direct material: G27 aluminum M14 steel alloy Machine Hours Flexible Budget 31,000 32,000 Machine Machine Hours Hours Actual Cost $ 366.0 $ 378.2 $ 390.4 $ 391.6 192.0 198.4 204.8 197.0 Direct labor: Assembler 387.0 399.9 412.8 401.0 Grinder 348.0 359.6 371.2 364.0 Production overhead: Maintenance 138.0 142.6 147.2 139.0 Supplies 243.0 251.1 259.2 244.0 Supervision 194.0 120.0 198.0 195.0 Inspection 258.0 185.0 264.0 261.0 Insurance 164.0 164.0 164.0 164.0 Depreciation 314.0 314.0 314.0 314.0 Total cost $ 2,604.0 $ 2,512.8 $ 2,725.6 $ 2,670.6 Rutherford develops flexible budgets for different levels of activity for use in evaluating performance. A total of 6,200 units was produced during 20x1, requiring 32,000 machine hours. The preceding manufacturing cost report compares the company's actual cost for the year with the static budget and the flexible budget for two different activity levels. 6. Compute the standard fixed-overhead rate per machine hour used for product costing. Note: Round your answer to 2 decimal places. Standard fixed-overhead rate per machine hour