Harwood Company is a manufacturer that operates a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would incur $640,000 in manufacturing overhead costs and work 80,000 machine hours. The actual overhead incurred was $500,000 machine hours were 20,000.

Required: Compute the company's predetermined overhead rate.

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