Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity$-$based costing system has the following seven activity cost pools:

Activity Cost Pool Estimated Overhead Cost Expected Activity

Labor$-$related $ $17,6005,000$ direct labor$-$hours

Machine$-$related $ $14,0008,000$ machine$-$hours

Machine setups $ $31,500700$ setups

Production orders $ $32,900700$ orders

Product testing $ $24,000600$ tests

Packaging $ $90,0003,600$ packages

General factory $ $50,0005,000$ direct labor$-$hours

Exercise $4-2$ Part $2($Algo$)$

$2.$ Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor$-$hours.