Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations.

Standard Custom

Direct labor costs 41,000 99,000

Machine Hours 1, 430 1,330

Setup hours 110 420

Compute the overhead rate using the traditional (plantwide) approach.(Round answer to 2 decimal places, e.g. 12.25.)

Predetermined overhead rate ____________ % of direct labor cost