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Doric Agricultural Products Uses a Predetermined Overhead Allocation Rate Based

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Doric Agricultural Products uses a predetermined overhead allocation rate based on direct labor cost. The predetermined overhead allocated during the year is $270,000. The details of production and costs incurred during the year are as follows:  Actual direct materials cost $812,500 Actual direct labor cost $180,000 Actual overhead costs incurred: $264,000 Total direct labor hours 5,520 hours \begin{array} { | l | r | } \hline \text { Actual direct materials cost } & \$ 812,500 \\\hline \text { Actual direct labor cost } & \$ 180,000 \\\hline \text { Actual overhead costs incurred: } & \$ 264,000 \\\hline \text { Total direct labor hours } & 5,520 \text { hours } \\\hline\end{array} What is the predetermined overhead allocation rate applied by Doric?


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