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Lisa Inc. ESTIMATED at the beginning of the year that its employees would work 200,000 direct labor hours on customer job orders during that year.

Lisa Inc. ESTIMATED at the beginning of the year that its employees would work 200,000 direct labor hours on customer job orders during that year. Total overhead costs were ESTIMATED to be $6,700,000 and machine hours were ESTIMATED to be 100,000 hours. At the end of the year, it was later determined that ACTUAL direct labor hours totaled 225,000 and ACTUAL machine hours totaled 90,000. If Lisa Inc. had allocated overhead costs based on direct labor hours, what did the company use for its predetermined manufacturing overhead rate?

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