1. Henkes Corporation bases its predetermined overhead rate on the estimated labour-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labour-hours for the upcoming year at 75,000 labour-hours. The estimated variable manufacturing overhead was $7.10 per labour-hour and the estimated total fixed manufacturing overhead was $1,372,500. The actual labour-hours for the year turned out to be 77,000 labour-hours. Required: Compute the company's predetermined overhead rate for the recently completed year.