The Clash Company uses normal costing.The company has one service department (M) and two production departments (P1 and P2).The service department allocates costs to the production departments based on machine hours.The company allocates service costs using what the book calls a dual rate method.This means that variable service costs are allocated separately from fixed service costs.The production departments use direct labor hours as the basis for computing their predetermined overhead rate.For 2019, the budgeted costs in Department M are $171,600 variable and $234,000 fixed.

Department P1Department P2

Budgeted machine hours28,000 hours50,000 hours

Long-run average machine hours35,000 hours55,000 hours

Budgeted departmental overhead$347,400$428,580

Budgeted direct labor hours100,000 hours53,000 hours

The budgeted departmental overhead numbers for P1 and P2 above do not include service department costs.

Compute the predetermined overhead rate in P2 for 2019.