Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year.

Budgeted Actual

Overhead cost $1,522,610 $1,494,610

Machine Hours 58,000 49,000

Direct Labor Hours 107,000 102,500

Overhead is applied on the basis of direct labor hours.

Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.)

Predetermined overhead rate $ per direct labor hour