Moon Company has two production departments, Cutting and Painting. The Cutting Department applies manufacturing overhead based on direct labor hours which are estimated to total 180,000 for the period. The Painting Department applies manufacturing overhead based on machine hours which are estimated to total 80,000 for the period. Information related to estimated overhead costs for each of the departments is presented below: Cutting Department $ 90,000 Painting Department $ 40,000 $ 1.50 Total fixed manufacturing overhead Variable manufacturing overhead per direct labor hour Variable manufacturing overhead per machine hour $ 3.00 The predetermined overhead rate the Cutting Department will use to apply manufacturing overhead to jobs is closest to: O $4.50 per direct labor hour $2.00 per direct labor hour 0 $3.00 per direct labor hour O $2.50 per direct labor hour