Clark Technology, Inc., employs a job-order costing system. The company uses predetermined overhead rates in applying

manufacturing overhead cost to individual jobs. The predetermined overhead rate is based on labor hours. At the

beginning of the year, the company's management made the following estimates for the year:

Machine-hours................ 321,000

Direct labor-hours.......... 69,000

Direct materials cost........ $ 575,000

Direct labor cost............ $ 438,000

Manufacturing overhead cost $1,035,000

Compute the predetermined overhead rate that should be used during the year.\

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Estimated $MOH Estimated activity