Luzadis company makes furniture using the best...assume that the company allocates any overapplied

Luzadis Company makes furniture using the latest automated technology. The company uses apb order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The folowing estimates were used in preparing the predetermined overhead rate at the beginning of the year: Machine-hours 81,000 Fixed manufacturing overhead cost 1,273,000 Variable manufacturing overhead per computer-hour 340 During the year, a glut of furniture on the market resulted in autting back production and a buildup of furniture in the companys warehouse. The companys cost records revealed the following actual cost and operating data for the year. 40,000 Machine-hours Manufacturing overhead cost 818,000 Inventories at year-end 420.000 Raw materials Work in process (includes overhead applied of 61,184) 180,000 1.040.000 Finished goods (includes overhead appled of 214,144) 2,800,000 Cost of goods soid (includes overhead applied of 489,472) Required 1 Compute the company's predetermined overhead rate for the year (Round your answer to 2 decimal places) 5.72 per hour Predetermined overhead rate