Liberty City Cycles uses job-order costing with a predetermined overhead rate and applies manufacturing overhead to jobs based on direct labor costs. During the year, Liberty City debited $192,500 of overhead to its work-in-process account. $180,000 of labor costs were credited to wages payable, of which $154,000 was debited to work-in-process and $26,000 to overhead. Liberty City incurred $215,600 of total overhead costs. What is the predetermined overhead rate? a. 107% b. 140% c. 112% O d. 125%