Smiley Company uses a normal costing system for allocating manufacturing overhead costs. The allocation base Smiley uses to allocate manufacturing overhead costs is direct manufacturing labor hours. For the year 2020, manufacturing overhead costs were budgeted at $800,000. Also, 8,000 direct manufacturing labor hours were budgeted. The actual manufacturing overhead incurred was $790,000 and the actual number of direct manufacturing labor hours used was 8,100. Also, the following pertains to actual results from Smileys accounts for 2020:

Direct manufacturing labor

hours used to make the goods

Ending Balance included in balance

Work-in-process $40,000 250

Finished goods $310,000 1750

Cost of goods sold $2,150,000 6,000

1. Find the predetermined (budgeted) manufacturing overhead rate for Smiley Company.