Johansen 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: 6,000 20,000 15,000 25,000 Direct materials Direct Labour Rent on factory building Sales salaries Depreciation on factory equipment Indirect Labour Production supervisor's salary 8,000 12,000 15,000 Johansen estimates that 20,000 direct Labour hours will be worked during the year. The predetermined overhead rate per hour will be: 5.05 3.50 3.75 E2.50