Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 62,500 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $437,500 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $458,000 and its actual total direct labor was 67,150 hours. Required: 1. Compute the predetermined overhead rate