Townley Inc. has provided the following data for the month of February. There were no beginning inventories consequently, the direct materials (DM), direct labor(DL), and manufacturing overhead applied (MOH) listed are all for the current month: Work in Process (DM $7,570; DL $8,810; MOH $8,320; Total $24,700), Finished Goods (DM $19,200; DL $24,000; MOH $15,600; Total $58,800), Cost of Goods Sold (DM $35,280; DL $44,100; MOH $28,080; Total $107,460). Manufacturing overhead for the month was overapplied by $3,120. The company allocates any underapplied or overapplied overhead to Work-in-Process, Finished Goods, and Cost of Goods Sold at the end of the month on the basis of the overhead applied during the month in those accounts. What is the rate Townley should use to adjust the original overhead assignment that resulted in the overapplied overhead? (Round your answer to the nearest $0.001).

The Grainger Corporation bases its predetermined overhead rate on the expected level of activity - 49,000 machine hours. The controller has suggested an alternative calculation that bases the overhead rate on the maximum capacity level - 54,000 machine hours. Using the maximum capacity level as the base normally results in underapplied overhead that can be interpreted as an estimate of the cost of idle resources (sometimes referred to as excess capacity). In order to comply with GAAP, the under-applied overhead balance would have to be assigned to products with an adjusting entry before the books are closed. Assume the actual level of activity for the year is 46,900 machine-hours. To simplify the calculations assume that the actual and estimated manufacturing overhead equals $1,323,000 per year and that all of these costs are fixed. Determine the predetermined overhead rate based on the estimated amount of the allocation base. (Round to the nearest $0.01).