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

Direct materials $ 4,500
Direct labor $30,000
Depreciation on factory equipment $ 9,000
Rent on factory $18,000
Sales salaries $43,500
Factory utilities $22,500
Indirect labor $ 9,000

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

a) $10.20.

b) $ 5.85.

c) $13.65.

d) $ 8.85.