Gravel Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year.
Budgeted
Actual
Overhead cost
$1,200,980
$1,172,980
Machine hours
58,400
48,899
Direct labor hours
97,304
103.011
Overhead is applied on the basis of direct labor hours.
Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.)