Paulson Company had the following estimated costs for 2019: Direct materials …….. $28,00 Direct

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Paulson Company had the following estimated costs for 2019: Direct materials …….. $28,00 Direct labor …….. ………………. 22,00 © Advertising expense ……………. 15,00 Rent on factory building ………… Depreciation on factory equipment … 6,50 O Indirect materials ……………… 10,00 Sales commissions ……. …….. 40,00 0 Production supervisor's salary …… 28,00 Insurance on equipment ………….. 15,00 It is known that 40% of the insurance relate s to equipment in the factory while 60% of the insurance relates t o the equipment in the administrative offices. Paulson Company estimates that 25,000 machin e hours will be used during 2019. Calculate Paulson Company's pre-determined o verhead rate based on machine hours.