Dubois Decors is an interior decorator in St. Louis, Missouri. The following costs were incurred in the firm's contract to redecorate a corporate CEO's office.

Direct material used$35,000Direct professional labor$60,000

The firm's budget for the year included the following estimates:

Budgeted overhead$400,000Budgeted direct professional labor$250,000

Overhead is applied to contracts using a predetermined overhead rate calculated annually. The rate is based on direct professional labor cost.

What is the predetermined overhead rate?