Acc505 Managerial Accounting: (TCO F) Escatel Corporation bases its predetermined overhead rate

Acc505 Managerial Accounting

(TCO F) Escatel Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. Data for the most recently completed year appear below.
Estimates made at the beginning of the year :
Estimated labor hours 24,000
Estimated variable manufacturing overhead $6.86 per labor hour
Estimated total fixed manufacturing overhead $394,560
Actual labor hours for the year 24,500

Required:
Compute the company's predetermined overhead rate for the recently completed year.
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