You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company designs and manufactures specialty tables. Each table is specially customized for the customer. This month, you have been asked to develop and manufacture two new tables for customers. You will design and build the tables. The company does not have indirect materials. You will be keeping track of the costs incurred to manufacture the tables using Job #1 Cost Sheet and Job #2 Cost Sheet.
		The cost of the direct materials that can be used to manufacture the table are as follows.
			Table Top	$1,900
			Table legs, quantity 4 ($600 per leg)	$2,400
			Drawer	$390
		Assume a $55 per hour wage rate to the assembly employees.
		The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours.
		The company estimates that there will be 120 direct labor hours worked during the month.
		The fixed estimated manufacturing overhead costs per month are:
			Factory supervisor salary	$3,000
			Rent for the factory	$1,500
			Depreciation of factory equipment	$1,800
			Property insurance of factory	$1,200
				____________________
			Total Estimated manufacturing overhead	$7,500
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	1	What is the predetermined overhead rate (POHR)?