Quick Step 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:

Estimated direct labor cost	$500,800
Actual direct labor cost	$466,000
Estimated manufacturing overhead costs	$425,700
Actual manufacturing overhead costs	$350,900
Estimated direct labor hours	250,200
Actual direct labor hours	232,200

If Quick Step Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead rate be?

A.

75%

B.

85%

C.

70%

D.

91%