Mercer Company uses normal costing and applies overhead on the basis of direct labor cost. For the month of October, direct labor cost was $56,000. Mercer also estimated the following costs at the beginning of the year: estimated overhead $360,000 and estimated direct labor cost $720,000. What is the predetermined overhead rate for the year? There is no predetermined overhead rate. $0.50 per direct labor dollar or 50% of direct labor cost $1.00 per direct labor dollar or 100% of direct labor cost $6.42 per direct labor dollar