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 companys operations.

		Standard		Custom
Direct labor costs		$ 43,000		$ 120,000
Machine hours		1,390		1,410
Setup hours		104		410

Total estimated overhead costs are $ 295,000. Overhead cost allocated to the machining activity cost pool is $ 199,000, and $ 96,000 is allocated to the machine setup activity cost pool.

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

enter the predetermined overhead rate in percentages of direct labor cost rounded to 2 decimal places