Schertzer and Trebbi have a professional service firm that has the following budgeted costs for the current year:

Associates' salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......$300,000

Depreciation­equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000

Fringe benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000

Lease expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220,000

Partners' salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000

Telephone and fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Compute the budgeted overhead rate for the coming year, using direct labor dollars as the overhead allocation base.