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Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 34,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $577,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris's actual manufacturing overhead for the year was $749,360 and its actual total direct labor was 34,500 hours.
Required:
Compute the company's predetermined overhead rate for the year. (Round your answer to 2 decimal places.)
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