Daguio Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $224,580. At the end of the year, actual direct labor-hours for the year were 18,200 hours, manufacturing overhead for the year was underapplied by $12,100, and the actual manufacturing overhead was $219,580. The predetermined overhead rate for the year must have been:
a $12.34 per direct labor-hour
b $11.40 per direct labor-hour
c $10.53 per direct labor-hour
d $12.06 per direct labor-hour