Isaacson'sIsaacson's Fine Furnishings manufactures upscale custom furniture. Isaacson'sIsaacson's currently uses a plantwide overhead rate based on direct labor hours to allocate its $ $1$ comma $200$ comma $000$$$1,200,000$ of manufacturing overhead to individual jobs.$$ However, DeanaDeana FullerFuller$,$ owner and$$ CEO, is considering refining the$$ company's costing system by using departmental overhead rates.$$ Currently, the Machining Department incurs $ $780$ comma $000$$$780,000$ of manufacturing overhead while the Finishing Department incurs $ $420$ comma $000$$$420,000$ of manufacturing overhead. FullerFuller has identified machine hours$($MH$)$ as the primary manufacturing overhead cost driver in the Machining Department and direct labor$($DL$)$ hours as the primary cost driver in the Finishing Department.

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Part $1$

Requirement $1.$ Compute the plantwide overhead rate assuming that Isaacson'sIsaacson's expects to incur $20$ comma $00020,000$ total DL hours during the year.

First identify the$$ formula, then compute the rate. $($Round your answer to the nearest whole$$ dollar.$)$

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Plantwide overhead rate