Reformer Company estimates that 64,000 direct labor hours will be worked and 80,000 machine hours will be incurred during the year. In addition, the company has developed the following cost estimates for next year: If overhead is applied on the basis of direct labor hours, what is the company's predetermined overhead rate? Sunstead company uses a job- order costing system and applies manufacturing overhead to work in process inventory using a predetermined overhead rate. the company had no beginning or ending inventories in the current month. During the month, the company's transactions included the following