The following information has been gathered for the Harrell Manufacturing Company for its fiscal year ending December 31:

Actual manufacturing overhead costs $ 227,500

Actual direct labor hours 56,400

Actual direct labor costs $ 460,000

Estimated manufacturing overhead costs $ 224,250

Estimated direct labor $ 449,000

Estimated direct labor hours 57,500

What is the predetermined manufacturing overhead rate per direct labor hour?

$4.03.

$3.98.

$3.96.

$3.90.