Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Overhead $416,000 520,000 Direct labor cost Ilberg uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $39,900. Required: 1. Calculate the predetermined overhead rate for the year. Enter the percentage answer as a whole number. % of direct labor cost