The Work-in-Process Inventory account of a manufacturing firm has a balance of $3,760 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $540 and $340 for materials used, and charges of $540 and $740 for direct labor used. Overhead is applied as a percentage of direct labor costs. The predetermined rate is:

42.6%.

80.0%.

125.0%.

235.0%.

Please show all work.