Dallas company uses a job order costing system. the company's executives estimated that direct labor would be $3,360,000 (240,000 hours at $14/hour) and that factory overhead would be $1,540,000 for the current period. at the end of the period, the records show that there had been 220,000 hours of direct labor and $1,240,000 of actual overhead costs. using direct labor hours as a base, what was the predetermined overhead rate? (round your answer to two decimal places.)
a) $5.17 per direct labor hour.
b) $7.00 per direct labor hour.
c) $6.42 per direct labor hour.
d) $5.84 per direct labor hour.
e) $6.25 per direct labor hour.