Escatel Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. Data for the most recently completed year appear below.

Estimates made at the beginning of the year
Estimated labor hours	25,000
Estimated variable manufacturing overhead	$7.10	per labor hour
Estimated total fixed manufacturing overhead	$625,000
Actual labor hours for the year	28,000

Required: Compute the company's predetermined overhead rate for the recently completed year.