Synergy Corporation Applies Manufacturing Overhead Based on Direct Labor Hours

Synergy Corporation applies manufacturing overhead based on direct labor hours. Synergy estimates its budgeted manufacturing overhead cost for the coming year to be $400,000 and its budgeted direct labor hours to be 100,000 hours. What is Synergy's budgeted overhead rate?

A) $.25 per direct labor hour
B) $25 per direct labor hour
C) $250 per direct labor hour
D) $4 per direct labor hour