Nguyen Inc

Nguyen Inc.applies overhead to products based on direct labor hours using normal costing.During 2012,total overhead costs were estimated to be $500,000.Actual overhead totaled $540,000 based on 32,000 actual direct labor hours.At the end of the year,overhead was overapplied by $20,000.Based on this information,what was the predetermined overhead rate used during 2012?

A) $16.88 per direct labor hour.
B) $16.25 per direct labor hour.
C) $15.63 per direct labor hour.
D) $17.50 per direct labor hour.
E) None of the answer choices is correct.