Rivera Company applies manufacturing overhead to jobs on the basis of direct labor cost. Overhead costs are expected (budgeted) to total $240,000 for the year, and direct labor cost is estimated at $240,000. For the year, $185,000 of overhead costs are incurred and the actual direct labor cost was $210,000.

Instructions:

(a) Compute the predetermined manufacturing overhead rate that was calculated at the beginning of the year.