Jackson Company estimated that its manufacturing employees would work 73,000 direct labor hours during the current year. During the year, its manufacturing employees actually worked 66,500 direct labor hours. Actual manufacturing overhead costs amounted to $361,000. Jackson applies overhead cost on the basis of direct labor hours. The manufacturing overhead account was overapplied by $14,725 during the current year. Based on this information the predetermined overhead rate was: $5.25 per labor hour. O $5.65 per labor hour. $6.85 per labor hour. O $5.74 per labor hour