The following budgeted information pertains to Olsen Company:

	Service Departments		Producing Departments
	Human Resources	Facilities	Mixing	Molding
Direct department costs	$80,000	$40,000	$280,000	$540,000
Direct labor hours	5,000	3,000	9,000	27,000
Square footage	2,000	3,000	10,500	17,500
# of Employees	4	5	11	9

The direct department costs for Mixing and Molding represent the direct department overhead costs of those departments, not including any direct material or direct labor. Human Resource Department costs are assigned to other departments based on the number of employees, and Facilities Department costs are assigned to other departments based on square footage occupied.

Assume that the Molding Department uses a predetermined overhead rate for assigning overhead costs to products based on budgeted total overhead after service department costs are allocated using the direct allocation method. The predetermined overhead rate for the Molding Department is (round all calculations to two decimal places):

Select one:

A. $16.63 per direct labor hour

B. $22.26 per direct labor hour

C. $20.00 per direct labor hour

D. $15.00 per direct labor hour