Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $23,600, direct labor $14,160, and manufacturing overhead $18,880. As of January 1, Job No. 49 had been completed at a cost of $106,200and was part of finished goods inventory. There was a $17,700balance in the Raw Materials Inventory account. During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $143,960and $186,440, respectively. The following additional events occurred during the month.

1.	Purchased additional raw materials of $106,200on account.
2.	Incurred factory labor costs of $82,600. Of this amount $18,880related to employer payroll taxes.
3.	Incurred manufacturing overhead costs as follows: indirect materials $20,060; indirect labor $23,600; depreciation expense on equipment $14,160; and various other manufacturing overhead costs on account $18,880.
4.	Assigned direct materials and direct labor to jobs as follows.

Job No.	Direct Materials	Direct Labor
50	$11,800	$5,900
51	46,020	29,500
52	35,400	23,600

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(a) Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates total manufacturing overhead costs of $991,200, direct labor costs of $826,000, and direct labor hours of23,600for the year. (Round answer to the nearest whole percent, e.g. 25%.)

Predetermined overhead rate

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