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

Elevation Industries 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 Estimated labor hours Estimated variable manufacturing overhead Estimated total fixed manufacturing overhead 45,000 hours $8.75 per labor hour $940,000 Actual labor hours for the year = 48,500 hours Compute the company's predetermined overhead rate for the recently completed year