Company X has the following estimated costs for

the next year:

• Direct materials: $16109
• Direct labor: $40000
• Salary of production supervisor: $38000
• Rent on factory equipment: $18893
• Sales commission: $86000
• Advertising expenses: $18000

It is estimated

that 53000 machine hours and 8000 direct labor hours will be worked during

the next year. What will be the predetermined overhead rate if the company applies

manufacturing overhead cost to jobs on the basis of direct labor hours?