Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow.

Basic Dominator Total Units produced 1,000 250 1,250 Machine-hours 4,500 2,500 7,000 Direct labor-hours 3,000 2,000 5,000 Direct materials costs $10,000 $ 3,750 $ 13,750 Direct labor costs 64,500 35,500 100,000 Manufacturing overhead costs 175,000 Total costs $288,750

Required Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs.