Escatel Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. Data for the most recently completed year appear below.
| Estimates made at the beginning of the year : | |
| Estimated labor hours | 24,000 |
| Estimated variable manufacturing overhead | $6.86 per labor hour |
| Estimated total fixed manufacturing overhead | $394,560 |
| Actual labor hours for the year | 24,500 |
Required:
Compute the company’s predetermined overhead rate for the recently completed year.
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