Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: 
If Nadal Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead rate be?
Definitions:
Net Taxes
Taxes paid by individuals or businesses after subtracting transfers and government subsidies.
Consumption
The act of using goods and services to fulfill individual or collective needs and desires, driving the demand side of an economy.
Government Purchases
Government Purchases are expenditures on goods and services made by the government, which can influence the economy's aggregate demand.
Recessionary Gap
The difference between the actual output in an economy and the potential output it could achieve with full employment.
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