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Fountain Company uses a pre-determined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year: Direct materials $10,000 Direct labour $20,000 Sales commissions $40,000 Salary of production $10,000 supervisor Indirect materials $4,000 Advertising expense $8,000 Rent on factory equipment $30,000 The company estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year. What pre-determined overhead rate would be used? $6.80/hr $4.40/hr $8.80/hr $3.40/hr