diff --git a/libraries/transformer/src/androidTest/java/androidx/media3/transformer/mh/TranscodeQualityTest.java b/libraries/transformer/src/androidTest/java/androidx/media3/transformer/mh/TranscodeQualityTest.java
index ba8f173695..1568f9002d 100644
--- a/libraries/transformer/src/androidTest/java/androidx/media3/transformer/mh/TranscodeQualityTest.java
+++ b/libraries/transformer/src/androidTest/java/androidx/media3/transformer/mh/TranscodeQualityTest.java
@@ -23,10 +23,12 @@ import android.net.Uri;
 import androidx.media3.common.MediaItem;
 import androidx.media3.common.MimeTypes;
 import androidx.media3.transformer.AndroidTestUtil;
+import androidx.media3.transformer.DefaultEncoderFactory;
 import androidx.media3.transformer.TransformationRequest;
 import androidx.media3.transformer.TransformationTestResult;
 import androidx.media3.transformer.Transformer;
 import androidx.media3.transformer.TransformerAndroidTestRunner;
+import androidx.media3.transformer.VideoEncoderSettings;
 import androidx.test.core.app.ApplicationProvider;
 import androidx.test.ext.junit.runners.AndroidJUnit4;
 import org.junit.Test;
@@ -36,9 +38,10 @@ import org.junit.runner.RunWith;
 @RunWith(AndroidJUnit4.class)
 public final class TranscodeQualityTest {
   @Test
-  public void transformWithDecodeEncode_ssimIsGreaterThan90Percent() throws Exception {
+  public void transformHighQualityTargetingAvcToAvc1920x1080_ssimIsGreaterThan95Percent()
+      throws Exception {
     Context context = ApplicationProvider.getApplicationContext();
-    String testId = "transformWithDecodeEncode_ssim";
+    String testId = "transformHighQualityTargetingAvcToAvc1920x1080_ssim";
 
     if (AndroidTestUtil.skipAndLogIfInsufficientCodecSupport(
         context,
@@ -52,7 +55,13 @@ public final class TranscodeQualityTest {
         new Transformer.Builder(context)
             .setTransformationRequest(
                 new TransformationRequest.Builder().setVideoMimeType(MimeTypes.VIDEO_H264).build())
-            .setEncoderFactory(new AndroidTestUtil.ForceEncodeEncoderFactory(context))
+            .setEncoderFactory(
+                new DefaultEncoderFactory.Builder(context)
+                    .setRequestedVideoEncoderSettings(
+                        new VideoEncoderSettings.Builder()
+                            .setEnableHighQualityTargeting(true)
+                            .build())
+                    .build())
             .setRemoveAudio(true)
             .build();
 
diff --git a/libraries/transformer/src/main/java/androidx/media3/transformer/DefaultEncoderFactory.java b/libraries/transformer/src/main/java/androidx/media3/transformer/DefaultEncoderFactory.java
index 8427f2cb4a..51d4d15782 100644
--- a/libraries/transformer/src/main/java/androidx/media3/transformer/DefaultEncoderFactory.java
+++ b/libraries/transformer/src/main/java/androidx/media3/transformer/DefaultEncoderFactory.java
@@ -241,27 +241,27 @@ public final class DefaultEncoderFactory implements Codec.EncoderFactory {
             mimeType, encoderSupportedFormat.width, encoderSupportedFormat.height);
     mediaFormat.setInteger(MediaFormat.KEY_FRAME_RATE, round(encoderSupportedFormat.frameRate));
 
-    int bitrate;
-
     if (supportedVideoEncoderSettings.enableHighQualityTargeting) {
-      bitrate =
+      int bitrate =
           new DeviceMappedEncoderBitrateProvider()
               .getBitrate(
                   encoderInfo.getName(),
                   encoderSupportedFormat.width,
                   encoderSupportedFormat.height,
                   encoderSupportedFormat.frameRate);
-    } else if (supportedVideoEncoderSettings.bitrate != VideoEncoderSettings.NO_VALUE) {
-      bitrate = supportedVideoEncoderSettings.bitrate;
-    } else {
-      bitrate =
+      encoderSupportedFormat =
+          encoderSupportedFormat.buildUpon().setAverageBitrate(bitrate).build();
+    } else if (encoderSupportedFormat.bitrate == Format.NO_VALUE) {
+      int bitrate =
           getSuggestedBitrate(
               encoderSupportedFormat.width,
               encoderSupportedFormat.height,
               encoderSupportedFormat.frameRate);
+      encoderSupportedFormat =
+          encoderSupportedFormat.buildUpon().setAverageBitrate(bitrate).build();
     }
 
-    mediaFormat.setInteger(MediaFormat.KEY_BIT_RATE, bitrate);
+    mediaFormat.setInteger(MediaFormat.KEY_BIT_RATE, encoderSupportedFormat.averageBitrate);
     mediaFormat.setInteger(MediaFormat.KEY_BITRATE_MODE, supportedVideoEncoderSettings.bitrateMode);
 
     if (supportedVideoEncoderSettings.profile != VideoEncoderSettings.NO_VALUE
@@ -391,11 +391,23 @@ public final class DefaultEncoderFactory implements Codec.EncoderFactory {
       return null;
     }
 
+    // TODO(b/238094555): Check encoder supports bitrate targeted by high quality.
     MediaCodecInfo pickedEncoderInfo = filteredEncoderInfos.get(0);
     int closestSupportedBitrate =
         EncoderUtil.getSupportedBitrateRange(pickedEncoderInfo, mimeType).clamp(requestedBitrate);
-    VideoEncoderSettings.Builder supportedEncodingSettingBuilder =
-        videoEncoderSettings.buildUpon().setBitrate(closestSupportedBitrate);
+
+    VideoEncoderSettings.Builder supportedEncodingSettingBuilder = videoEncoderSettings.buildUpon();
+    Format.Builder encoderSupportedFormatBuilder =
+        requestedFormat
+            .buildUpon()
+            .setSampleMimeType(mimeType)
+            .setWidth(finalResolution.getWidth())
+            .setHeight(finalResolution.getHeight());
+
+    if (!videoEncoderSettings.enableHighQualityTargeting) {
+      supportedEncodingSettingBuilder.setBitrate(closestSupportedBitrate);
+      encoderSupportedFormatBuilder.setAverageBitrate(closestSupportedBitrate);
+    }
 
     if (videoEncoderSettings.profile == VideoEncoderSettings.NO_VALUE
         || videoEncoderSettings.level == VideoEncoderSettings.NO_VALUE
@@ -406,16 +418,10 @@ public final class DefaultEncoderFactory implements Codec.EncoderFactory {
           VideoEncoderSettings.NO_VALUE, VideoEncoderSettings.NO_VALUE);
     }
 
-    Format encoderSupportedFormat =
-        requestedFormat
-            .buildUpon()
-            .setSampleMimeType(mimeType)
-            .setWidth(finalResolution.getWidth())
-            .setHeight(finalResolution.getHeight())
-            .setAverageBitrate(closestSupportedBitrate)
-            .build();
     return new VideoEncoderQueryResult(
-        pickedEncoderInfo, encoderSupportedFormat, supportedEncodingSettingBuilder.build());
+        pickedEncoderInfo,
+        encoderSupportedFormatBuilder.build(),
+        supportedEncodingSettingBuilder.build());
   }
 
   /** Returns a list of encoders that support the requested resolution most closely. */
@@ -650,7 +656,7 @@ public final class DefaultEncoderFactory implements Codec.EncoderFactory {
    * </ul>
    */
   private static int getSuggestedBitrate(int width, int height, float frameRate) {
-    // TODO(b/210591626) Refactor into a BitrateProvider.
+    // TODO(b/238094555) Refactor into a BitrateProvider.
     // Assume medium motion factor.
     // 1080p60 -> 16.6Mbps, 720p30 -> 3.7Mbps.
     return (int) (width * height * frameRate * 0.07 * 2);