Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $79,750 and 2,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $81,850 and actual direct labor-hours were 2,250.

The predetermined overhead rate for the year was closest to: (Round your answer to 2 decimal places.)

$33.92

$31.90

$32.60

$30.66