Nelson Manufacturing Applies Overhead to Its Manufactured Products Based on Direct

Nelson Manufacturing applies overhead to its manufactured products based on direct labor hours. Last year, total overhead costs were estimated to be $108,900. Actual overhead costs ended up totaling $115,000 when 10,000 direct labor hours were actually worked. At the end of the year, overhead was overapplied by $6,000. What was the predetermined overhead rate that must have been used during the year?

A) $11.50 per direct labor hour
B) $10.60 per direct labor hour
C) $12.10 per direct labor hour
D) $10.90 per direct labor hour