Predetermined Overhead Rate, Managerial Accounting

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Logan Products computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year, it estimated that 39,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $565,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Logan’s actual manufacturing overhead for the year was $791,469 and its actual total direct labor was 39,500 hours.

Compute the company’s predetermined overhead rate for the year. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

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