A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Level of activity		2,700	DLHs
Overhead costs at the denominator activity level:
Variable overhead cost	$	8,900
Fixed overhead cost	$	36,625

The following data pertain to operations for the most recent period:

Actual hours		3,000	DLHs
Standard hours allowed for the actual output		2,612	DLHs
Actual total variable manufacturing overhead cost	$	9,500
Actual total fixed manufacturing overhead cost	$	37,025

What is the predetermined overhead rate to the nearest cent?

$15.51.

$15.18.

$17.23.

$16.86.