Bakker 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 $68,850 and 2,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $67,150 and actual direct labor-hours were 2,600.

The predetermined overhead rate for the year was closest to:

1. $26.50

2. $25.83

3. $24.90

4. $25.50