CR Corporation has the following estimated costs for the next year:

Direct materials

$4,000

Direct labor

$20,000

Rent on factory building

$15,000

Sales salaries

$25,000

Depreciation on factory equipment

$8,000

Indirect labor

$10,000

Production supervisors salary

$12,000

CR Corporation estimates that 20,000 labor-hours will be worked during the year. If overhead is applied on the basis of direct labor-hours, the overhead rate per hour will be:

Group of answer choices

$2.25

$3.25

$3.45

$4.70