1. Lana, Inc., a manufacturing business, estimated the following for Year 1.

   Indirect materials $52,000

   Indirect labor $17,000

   Building Rent $48,000

   Depreciation on production equipment $23,000

   Administrative office supplies $15,000

   Direct labor $60,000

   Direct materials $82,000

   Machine hours 25,000 hours

   Direct labor hours 35,000 hours

   Actual data for Year 1 are as follows:

   Total manufacturing overhead $155,000

   Machine hours 28,000 hours

   Direct labor hours 32,000 hours

   The manufacturing overhead rate is determined on the basis of direct labor hours. Using the data above, what is the predetermined manufacturing overhead rate?

   • $4.69
   • $4.84
   • $5.60
   • $4.42
   • $4.43
   • $4.00
   • $5.11