CWN Company uses a job order costing system and last period incurred $76,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $79,000. It also expects to incur $100,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be:

• 79%.

• 76%.

• 96%.

• 132%.

• 127%.