operates costing system and applies overhead cost to jobs on the basis of direct production (not the basis of materials manufacturing overhead for an materials used on a cost formula that estimated $104,400 of The company has overhead was based in estimated allocation base of $87,000 direct material dollars to be used provided the following data for the just completed year: $140,000 Purchase of raw materials 83,000 Direct labor cost Manufacturing overhead costs: $103,800 Indirect labor 8,600 Property taxes 17.000 Depreciation of equipment 15,000 Maintenance 11,100 Insurance 35,000 Rent, building Beginning Ending 29,000 14,000 Raw Materials 49,000 37,000 Work in Process 74,000 $60,000 Finished Goods Required 1-a. Compute the predetermined overhead rate for the year. Predetermined overhead rate