Refer to question 2 above. Assume that the Molding Department uses a predetermined overhead rate for assigning overhead costs to products based on budgeted total overhead after service department costs are allocated using the direct allocation method. The predetermined overhead rate for the Molding Department is (round all calculations to two decimal places)

a. $26.88 per direct labor hour

b. $23.89 per direct labor hour

c. $25.56 per direct labor hour

d. $29.25 per direct labor hour