Jackson Company estimated that its manufacturing employees would work 76,000 direct labor hours during the current year. During the year, its manufacturing employees actually worked 68,000 direct labor hours. Actual manufacturing overhead costs amounted to $358,000. Jackson applies overhead cost on the basis of direct labor hours. The manufacturing overhead account was overapplied by $16,000 during the current year. Based on this information the predetermined overhead rate was: Multiple Choice $6.70 per labor hour. $5.10 per labor hour $5.50 per labor hour. $5.59 per labor hour