GHI Inc. has commenced work on three jobs during its first year of operations. Costs incurred for each of these jobs are as follows:

	Job 1		Job 2		Job 3
Direct Materials	$	100,000	$	150,000	$	200,000
Direct Labour	$	100,000	$	200,000	$	180,000

Overhead is applied to jobs at a rate of $0.50 per direct labour dollar spent. During the year, Job 1 was completed, while Job 2 was completed and sold. Job 3 is still process at the end of the year. Actual manufacturing overhead costs incurred amounted to $300,000. GHI employees worked a total of 40,000 hours during the year. GHI's overhead application rate (per direct labour hour) was:

Multiple Choice

• $4.80

• $6

• $10

• $9.60