The following set of questions uses the same information:

XYZ Company had the following information:

Budgeted overhead $75,000

Actual overhead $80,000

Budgeted Direct-labor hours 20,000

Ending balances in the following accounts:

	Ending Balance	Actual DLH in Ending Balance
Raw Materials Inventory	$ 40,000	0
Work In Process Inventory	$ 30,000	2,100
Finished Goods Inventory	$ 60,000	8,400
Cost of Goods Sold	$210,000	10,500

Compute the companys predetermined overhead rate assuming that the company uses direct labor hours as their cost driver.