Howard lumber company mistakenly classified as an expense a product costs that totaled 20,000. the company produced 2,000 units of product and sold 1,000 of them during the year. management is paid a bonus equal to 2% of net income. in the year in which the mistake was made-product costs were overstated-management bonuses were overstated-the company's income statement portrayed a more favorable position than actually existed-the company's net income was understated

Harris fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. at the beginning of the year, it estimated that 34,000 direct labor-hours would be required for the period’s estimated level of production. the company also estimated $599,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. harris's actual manufacturing overhead for the year was $768,234 and its actual total direct labor was 34,500 hours.required: compute the company's predetermined overhead rate for the year. (round your answer to 2 decimal places.)