Yancey Productions is a film studio that uses job$-$order costing. The company$$s direct materials include costumes and props. Its direct labor includes each film$$s actors, directors, and extras. The company$$s overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor$-$dollars.

At the beginning of the year, Yancey made the following estimates:

Direct labor$-$dollars to support all productions $ $8,870,000$

Fixed overhead cost $ $5,322,000$

Variable overhead cost per direct labor$-$dollar $ $0\mathrm{.}16$

Required:

Compute the predetermined overhead rate.

During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:

Direct materials $ $1,414,000$

Direct labor cost $ $2,661,000$