Reference no: EM132805949

The Equinox Fabrication Plant suffered a fire incident in? August, and most of the records for the year were destroyed. The following accounting data for the year were? recovered:

Total manufacturing overhead estimated at the beginning of the year   ?$101,560
Total direct labor costs estimated at the beginning of the year             ?$185,000
Total direct labor hours estimated at the beginning of the year             ?3,200 direct labor hours
Actual manufacturing overhead costs for the year                                  ?$98,800
Actual direct labor costs for the year                                                 ?$140,000
Actual direct labor hours for the year                                             ?2,800 direct labor hours

Problem 1: The company bases its manufacturing overhead allocation on the number of direct labor hours. What was the predetermined overhead allocation rate for the? year? (Round your answer to the nearest? cent.)