Willow Creek Corporation bases its pre-determined overhead rate on the estimated labor hrs for the upcoming year. At the starting of the most recently completed year, the company estimated the labor hrs for the upcoming year at 38,500 labor hours. The estimated variable manufacturing overhead was $7.37 per labor hour and the estimated total fixed manufacturing overhead was $601,328. The actual labor hrs for the year turned out to be 41,721 labor hours.
Required:
Calculate the company's pre-determined overhead rate for the recently completed year.