Longobardi Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the labor-hours for the upcoming year at 38,100 labor-hours. The estimated variable manufacturing overhead was $5.55 per labor-hour and the estimated total fixed manufacturing overhead was $872,109. The actual labor-hours for the year turned out to be 34,500 labor-hours. The predetermined overhead rate for the recently completed year was closest to:

Multiple Choice

• $28.44 per labor-hour

• $5.55 per labor-hour

• $31.41 per labor-hour

• $22.89 per labor-hour