Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Actual direct labor hours 233,000Estimated direct labor hours 251,000Actual manufacturing overhead costs$358,400Estimated manufacturing overhead costs$429,700Actual direct labor cost$465,900Estimated direct labor cost$500,300If Nadal Company uses direct labor hours as the allocation base, what would the predetermined manufacturing overhead rate be?

a. $1.54 per direct labor hour

b. $1.71 per direct labor hour

c. $1.84 per direct labor hour

d. $0.83 per direct labor hour