Gerstein Corporation uses a job$-$order costing system with a single plantwide predetermined overhead rate based on direct labor$-$hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $$90,000,$ variable manufacturing overhead of $$3\mathrm{.}70$ per direct labor$-$hour, and $50,000$ direct labor$-$hours. The company recently completed Job M$800$ which required $150$ direct labor$-$hours.

The predetermined overhead rate is closest to:

Multiple Choice

$$1\mathrm{.}80$ per direct labor$-$hour

$$5\mathrm{.}50$ per direct labor$-$hour

$$9\mathrm{.}20$ per direct labor$-$hour

$$3\mathrm{.}70$ per direct labor$-$hour