Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $3,500,000 (350,000 hours at $10/hour) and that factory overhead would be $2,400,000 for the current period. At the end of the period, the records show that there had been 210,000 hours of direct labor and $2,100,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead allocation rate?

rev: 03_23_2015_QC_CS-11558

$8.16 per direct labor hour.

$10.66 per direct labor hour.

$11.40 per direct labor hour.

$6.86 per direct labor hour.

$6.00 per direct labor hour.