Coleridge Company estimates that its production workers will work 125,000 direct labor hours during the upcoming period and that overhead costs will amount to $750,000. Assume Overhead to be allocated on the basis of direct labor hours. What predetermined overhead rate would be used to apply overhead to production during the period?
a) $6.00 per direct labor hour
b) $0.67 per unit
c) $0.67 per direct labor hour
d) $6.00 per unit