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 36,000 labor-hours. The estimated variable manufacturing overhead was $5.80 per labor-hour and the estimated total fixed manufacturing overhead was $775,800. The actual labor-hours for the year turned out to be 32,200 labor-hours. The predetermined overhead rate for the recently completed year was closest to:

Multiple Choice

• $27.35 per labor-hour

• $21.55 per labor-hour

• $5.80 per labor-hour

• $30.58 per labor-hour