Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year:

Machine-hours		89,000
Fixed manufacturing overhead cost	$	1,275,000
Variable manufacturing overhead per computer-hour	$	3.10

During the year, a glut of furniture on the market resulted in cutting 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:

Machine-hours		50,000
Manufacturing overhead cost	$	933,000
Inventories at year-end:
Raw materials	$	440,000
Work in process (includes overhead applied of 34,860)	$	150,000
Finished goods (includes overhead applied of 191,730)	$	1,010,000
Cost of goods sold (includes overhead applied of 644,910)	$	2,770,000

Compute the companys predetermined overhead rate for the year.