Your Company uses predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the company worked 10,000 direct labor-hours and incurred $80,000 of actual manufacturing overhead cost. Overhead was over-applied by $5,000. What is the predetermined overhead rate?

Group of answer choices

a. $8.50

b. $7.80

c. $7.50

d. $8.00

e. $8.20

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