Shoostar Ltd is a video tech company that produces videos for companies' marketing campaigns and video training content. All jobs are tailor-made to the clients' requirements. The company uses a job costing system, and had 2 jobs in process at the start of the year: Job S1 ($66 000) and Job S3 ($55 000). The following information is available:

(i) The company applies manufacturing overhead on the basis of video production hours. Budgeted overhead and video production activity for the year were anticipated to be $800 000 and 40 000 hours, respectively.

(ii) The company worked on four jobs during the first quarter (i.e. from 1 July to 30 September). Direct materials used, direct labour incurred and video production hours were as shown in the following table:

Job numbers	Direct material	Direct labour	Video production hours
S1	$ -	$40 000	500
S2	50 500	23 000	1000
S3	-	65 000	1 500
S4	30 000	$40 000	2 000

(iii) Manufacturing overhead incurred during the first quarter was $385 000.

(iv) Shoostar Ltd completed Job S1, and Job S3 during the first quarter. Job S1 was sold on credit, producing a profit of $60 000 for the company.

Required:

1. Calculate the company's predetermined overhead rate. (1.5 marks)