1.company has the following estimated costs for 2014

Direct materials25,000

Advertising expense15,000

Rent on factory building13,000

Rent on office building8,000

Direct labor22,000

Depreciation on factory equipment 6,000

Indirect materials10,000

Sales salaries28,000

Insurance on factory equipment12,000

Indirect labor5,000

Property taxes on factory building10,000

Property taxes on office building10,000

Franklin estimates that 32,000 direct labor hours and 20,000 machine hours will be worked during 2014. If overhead is applied on the basis of direct labor hours, the overhead application rate per hour will:

A. $2.35

C. $2.10

D. $1.40

E. $2.80

All production