Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $299,600; materials of $404,000 and direct labor of $214,000. During the year Adams incurred $412,000 in materials costs, $414,700 in overhead costs and $218,000 in direct labor costs. Compute the predetermined overhead rate.

Multiple Choice

• 190.0%.

• 74%.

• 71%.

• 140.0%.

• 188.0%.