Craig Company uses a predetermined overhead rate to assign overhead to jobs on the basis of machine hours

Craig Company uses a predetermined overhead rate to assign overhead to jobs on the basis of machine hours. The budgeted level of company's plant is 50,000 machine hours. During the year, Burn Company used 48,000 machine hours and incurred actual overhead costs of P2M.

Craig Company also has the following balances of applied overhead in its accounts:

         Work in Process                   P460,000

         Cost of goods sold                1,440,000

         Finished goods                     500,000

Required:

The predetermined overhead rate is _____.