A company manufactures radars for ships and applies overhead to its products based upon labor hours. At
the beginning of the year the following costs were estimated:
Memory chips used in the radar		125,000
Equipment maintenance in factory	90,000
Heating Costs in factory			84,000
Salary of president			120,000
wages of workers who assemble the radar set	140,000
solder to assemble the radar		25,000
Factory management's telephone expense	15,000
Estimated direct labor hours for the year are	10,000
What is the company's predetermined overhead rate per direct labor hour?
27.1
21.4
20.5
12.25