Exercise 15-20 (Algo) Computing overhead rate and direct materials LO P3 Tasty Bakery applies overhead based on direct labor costs. The company reports the following costs for the year: direct materials, $760,000; direct labor, $4,100,000, and overhead applied, $2,460,000 1. Determine the company's predetermined overhead rate for the year. 2. The ending balance of its Work in Process Inventory account was $82,000, which included $31,000 of direct labor costs. Determine the direct materials costs in ending Work in Process Inventory Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the company's predetermined overhead rate for the year. We take the information available to determine what predetermined overhead rate was used for the period. We back into this rate as follows: Overhead Rate Overhead Rate Overhead Rate Numerator: 1 Denominator: Required L Required 2 >