Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $254,900. At the end of the year, actual direct labor-hours for the year were 18,500 hours, manufacturing overhead for the year was underapplied by $16,800, and the actual manufacturing overhead was $249,900. The predetermined overhead rate for the year must have been closest to: Please show calculations. Thank you.

$12.60

$13.26

$13.54

$11.73