The following budgeted data is available for an accounting period: Department A Manufacturing overhead R112 000 Direct labour cost R121 000 Direct labour hours 40 200 Machine hours 40 000. Department B Manufacturing overhead R85 000 Direct labour cost R100 000 Direct labour hours 28 400 Machine hours 28 000. Department A uses machine hours as a base to apply overheads and Department B uses direct labour cost. Calculate the pre-determined overhead rate for Department A. Round to two decimal places.

• A.R1.12
• B.R3.03
• C.R2.80
• D.R2.79