Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $111,800 of manufacturing overhead for an estimated allocation base of $86,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: Purchase of raw materials $134,000 Direct labor cost 82,000 Manufacturing overhead costs: Indirect labor $108,100 Property taxes 8,800 Depreciation of equipment 18,000 Maintenance 13,000 Insurance 10,300 Rent, building 38,000 Beginning Ending Raw Materials 25,000 11,000 Work in Process 45,000 40,000 Finished Goods 69,000 59,000 Required: 1-a. Compute the predetermined overhead rate for the year. redetermined overhead rate