Sherborn Construction, Inc. is a home builder in Arizona. Sherborn uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs. For the year, it estimated construction overhead of $1,350,000 and total direct labor cost of $2,700,000. The following events occurred during August: (Click the icon to view the events.) Read the requirements. Requirement 1. Calculate Sherborn's predetermined overhead allocation rate for the year. = == Predetermined overhead allocation rate %