Activity Levels Used to compute Overhead Rates labor intensive, he plans to use direct labor hours as his overhead driver. For the coming year, he Reggie Wilmore has just started a new business-building and installing custom garage organization systems. Reggie builds the cabinets and work benches in his workshop, then installs them in clients' garages. Reggie figures his overhead for the coming year will be $12,000. Since his business expects to complete 140 jobs, averaging 35 direct labor hours each. However, he has the capacity to complete 175 jobs averaging 35 direct labor hours each. Required: 1. Compute the predetermined overhead rates using each of the measures in your answer to Requirement 1. Round your answers to the nearest cent. Predetermined Overhead Rate Expected actual activity per hour Theoretical activity per hour 2. Which one would you recommend that Reggie use