Branin Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $160,000, variable manufacturing overhead of $3.40 per direct labor- hour, and 80,000 direct labor-hours. The company has provided the following data concerning Job A578 which was recently completed: total labor hours: 250. Direct materials: $715. Direct labor cost: $9000.

The predetermined overhead rate is closest to:

		$8.80 per direct labor-hour
		$2.00 per direct labor-hour
		$3.40 per direct labor-hour
		$5.40 per direct labor-hour