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JLR Enterprises provides consulting services throughout California and uses a job$-$order costing system to accumulate the

cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR$,$

but not identifiable with specific clients, are charged to jobs by using a predetermined overhead application rate. Clients

are billed for directly chargeable costs, overhead, and a markup.

JLR$\text{'}$s director of cost management, Victor Anthony, anticipates the following costs for the upcoming year:

The firm's partners desire to make a $$640,000$ profit for the firm and plan to add a percentage markup on total cost to

achieve that figure.

On March $10,$ JLR completed work on a project for Martin Manufacturing. The following costs were incurred: professional

staff salaries, $$41,000$; administrative support staff, $$2,600$; travel, $$4,500$; photocopying, $$500$; and other operating costs,

$$1,400.$

Calculate the predetermined overhead rate. The rate is based on total costs traceable to client jobs.