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Escatel Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. Data for the most recently completed year appear below.

Estimates made at the beginning of the year 24,000

Estimated labor hours $6.86 per labor hour

Estimated variable manufacturing overhead $394,560

Estimated total fixed manufacturing overhead 24,500

Actual labor hours for the year

Required:

Compute the company's predetermined overhead rate for the recently completed year.

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