Potter Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $16,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 10,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours.

The predetermined overhead rate is closest to:

	a.	$1.60 per direct labor-hour
	b.	$4.40 per direct labor-hour
	c.	$2.80 per direct labor-hour
	d.	$6.40 per direct labor-hour