Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $4,160,000 (260,000 hours at $16/hour) and that factory overhead would be $1,560,000 for the current period. At the end of the period, the records show that there had been 240,000 hours of direct labor and $1,260,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate? (Round your answer to two decimal places.)

Multiple choice question A-E under :

$6.50 per direct labor hour.

$5.93 per direct labor hour.

$6.00 per direct labor hour.

$5.52 per direct labor hour.

$4.85 per direct labor hour.