Logan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 26,000 direct labor-hours would be required for the periods estimated level of production. The company also estimated $504,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Logans actual manufacturing overhead for the year was $638,242 and its actual total direct labor was 26,500 hours.