1. Compute a predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the consultant. Also compute a predetermined rate for year 2 using direct labor-hours as the allocation base. Pounds of materials used $396000/132000 $3/pound Machine hours $316800/13200 $24/hr Number of inspections $79200/45 $1760/inspection Number of units $158400/480000 $.33/unit Direct labor hours $1247400/7500 $166.32/hr