Q3.Silver Corporation uses a POH (predetermined overhead) rate based on DL (direct labor-hours) to apply MOH (manufacturing overhead) to jobs. The Corporation has provided the following estimated costs for the next year: [1 Mark]

Direct materials	$ 6,000
Direct labor	$ 20,000
Rent on factory building	$ 15,000
Sales salaries	$ 25,000
Depreciation on factory equipment	$ 8,000
Indirect labor	$ 12,000
Production supervisor's salary	$ 25,000

Silver Corp. estimates that 20,000 DL (direct labor-hours) will be worked during the year. The POR (predetermined overhead rate) per hour will be:

1. $2.50 per DL (direct labor-hour)
2. $2.79 per DL (direct labor-hour)
3. $3.00 per DL (direct labor-hour)
4. $4.00 per DL (direct labor-hour)