Sunland 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
$69,600
$5,400
Direct labor
$29,000
$3,800
Manufacturing overhead costs
$93,960
Machine hours
104,400
1,620
During 2022, the actual machine hours totaled 110,200, and actual overhead costs were $82,000.
(a)
Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 52.75.)
Predetermined overhead rate
$
per machine hour