Carlo Limited supplied the following information and advised that manufacturing overhead is applied on the basis of direct labour hours.

Estimated manufacturing overhead costs $2 295 000

Estimated direct labour hours 340 000

Actual direct labour hours 348 000

Actual manufacturing overhead costs $2 357 000

What is the predetermined overhead rate?

Select one:

a.$6.50

b.$6.25

c.$6.75

d.$7.00