Visible Corporation is an up and coming telephone service provider (Welcome to the future of

phone service!). However, they also have a manufacturing department where they make phones.

Visible uses a predetermined overhead rate based on direct labor-hours to apply manufacturing

overhead to jobs. The corporation has provided the following estimates for the next year:

Direct materials $20,000

Direct labor $25,000

Rent on factory building $4,000

Sales salaries $75,000

Depreciation on factory equipment $7,000

Indirect materials $8,000

Production supervisor's salary $50,000

Visible estimates that 10,000 direct labor-hours will be worked during the year. What is the predetermined overhead rate for Visible?

(A) $6.20 (B) $15.10 (C) $7.50 (D) $6.90