Melendez Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs during the year. Direct materials $50,000 Direct labor 95,000 Production supervisor's salary 62,000 Indirect labor 34,000 Sales salaries 58,000 Depreciation on factory equipment 26,000 Depreciation on sales office copy machines 7,000 Factory rent 88,000 Melendez estimates that 12,000 direct labor-hours will be worked during the year. What would be the predetermined overhead rate?