3. Annual overhead information is given in Table 3. Overhead is allocated based direct labor hours. Estimated annual direct labor hours are 21,000. Calculate a predetermined OH rate (round to two decimal places if needed). Use this rate when you need to apply OH.

Cost description	Amount
Indirect material	$9,060
Indirect labor	60,000
Machine Maintenance	6,200
Electricity	9,800
Depreciation	6,360
Quality testing	7,280
Total	$98,700

Predetermined OH rate: