2. 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$500,300Actual direct labor cost$465,700Estimated manufacturing overhead costs$425,800Actual manufacturing overhead costs$350,000Estimated direct labor hours250,200Actual direct labor hours232,800If Quick Step Company uses direct labor hours as the allocation base, what would the predetermined manufacturing overhead rate be?

   1. $1.40 per direct labor hour

   2. $1.83 per direct labor hour

   3. $1.50 per direct labor hour

   4. $1.70 per direct labor hour