Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScape estimated the following for the year:

Number of direct labor hours $6,720$

Direct labor cost $$67,200$

Overhead cost $$50,400$

During the year, the following actual amounts were experienced:

Number of direct labor hours $6,045$

Direct labor incurred $$66,495$

Overhead incurred $$50,500$

Required:

$1.$ Should EcoScape use process costing or job$-$order costing?

Job$-$order costing

$2.$ If EcoScape uses a normal costing system and overhead is applied on the basis of direct labor hours,

What is the overhead rate? Round your answer to the nearest cent.