Techniques, Inc. uses a predetermined manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs. The following information has been collected for the previous year:

Direct materials	$	66,500
Direct labor		89,000
Sales commission		44,500
Indirect labor		30,000
Rent on office equipment		15,000
Depreciation factory building		45,000
Utilities factory		75,000

Techniques used 20,000 direct labor hours and 40,000 machine hours during the previous year. What is the predetermined overhead rate per direct labor hour?

$8.53 per hour.

$7.50 per hour.

$14.50 per hour.

$7.78 per hour.