Daguio Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

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 closest to:

A) $11.40
B) $12.34
C) $12.06
D) $10.53