Problem:
Logan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 33,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $573,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Logan's actual manufacturing overhead for the year was $737,457 and its actual total direct labor was 33,500 hours.
Required:
Question: Compute the company's predetermined overhead rate for the year.
Note: Please show the work not just the answer.