Horton Company applies overhead based on direct labor hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $600,000, and direct labor hours would be 20,000. Actual overhead by the conclusion of 20x1 amounted to $700,000. On the basis of this information, Horton's 20x1 predetermined overhead rate is:

A. $0.02 per direct labor hour.

B. $0.3 per direct labor hour.

C. $30 per direct labor hour.

D. $50 per direct labor hour.

E. none of the above