Jameson Company uses a predetermined overhead rate based on direct Labour hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for the next year:

Direct materials 5,000

Direct Labour 19,000

Rent on factory building 16,000

Sales salaries 24,000

Depreciation on factory equipment 7,000

Indirect Labour 11,000

Production supervisor's salary 14,000

Jameson estimates that 24,000 direct Labour hours will be worked during the year. The predetermined overhead rate per hour will be:

2.79

4.00

3.00

2.00