Duran Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $245,230. At the end of the year, actual direct labor-hours for the year were 18,600 hours, manufacturing overhead for the year was underapplied by $12,500, and the actual manufacturing overhead was $231,980. The predetermined overhead rate for the year must have been closest to: $11.37 O $13.18. $11.80. $12.47