Wildhorse Manufacturing is a small manufacturer that uses machine hours as its activity base for assigning overhead costs to jobs. The company estimated the following amounts for 2022 for the company and for Job 62:
Company Job 62
Direct materials
$73,200 $5,700
Direct labor
$30,500 $4,100
Manufacturing overhead costs
$87,840
Machine hours
109,800 1,710
During 2022, the actual machine hours totaled 115,900, and actual overhead costs were $86,200.
(a)
Compute the predetermined overhead rate. (Round answer to 2 decimal places, eg. 52.75.)
Predetermined overhead rate
$ per machine hour