At the beginning of a year, a company predicts total direct materials costs of $920,000 and total overhead costs of $1,310,000. If the company uses direct materials costs as its activity base to apply overhead, what is the predetermined overhead rate it should use during the year? Predetermined overhead rate Choose Denominator: Rate Choose Numerator: Estimated overhead costs / Rate 0 Actual overhead cost Applied overhead cost Cost of goods sold Current assets Current liabilities At the beginning of a year, a company predicts total direct materials costs of $920,000 and total overhead costs of $1,310,000. If the company uses direct materials costs as its activity base to apply overhead, what is the predetermined overhead rate it should use during the year? Predetermined overhead rate 1 Choose Denominator: Rate Choose Numerator: Estimated overhead costs = Rate 0 Current assets Current liabilities Estimated overhead costs Net sales Estimated direct materials