CR company has the following estimated cost for the next year:

Direct Materials $4,000

Direct Labor 20,000

Rent on factory building 15,000

Sales salaries $25,000

Depreciation equipment 8,000

indirect Labor 10,000

Production supervisor salary 12,000

CR Company estimastes that 20,000 labor hrs will be worked during the year. If overhead is applied on the basis of direct labor hours, the overhead rate per hour will be. show solution..

Choices: a. $2.25 b. $3.25 c. $3.45