Wall Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation's estimated costs for the next year are:

Direct materials	$ 3,000
Direct labor	$20,000
Depreciation on factory equipment	$ 6,000
Rent on factory	$12,000
Sales salaries	$29,000
Factory utilities	$15,000
Indirect labor	$ 6,000

It is estimated that 10,000 direct labor-hours will be worked during the year. The predetermined overhead rate will be:

$3.90 per direct-labor hour

$5.90 per direct-labor hour

$6.80 per direct-labor hour

$9.10 per direct-labor hour