The Clothing Company manufactures two product lines: sweatshirts and T-shirts. The company currently uses a plant-wide overhead rate using labor hours to allocate overhead. At the beginning of the year, the company made the following estimates:

Product Sweatshirts T-shirts

Machine hours per unit 1 0.5

Direct material cost per unit $6 $3

Direct labor hours per unit 2 1

Direct labor cost per unit $20 $10

During the year, the company expected to produce 10,000 sweatshirts and 55,000 t-shirts.

Expected manufacturing overhead cost for the year is $1,000,000.

Question : Compute the plant wide overhead rate. Round to two decimal places.