Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $231,750. At the end of the year, actual direct labor-hours for the year were 17,500 hours, manufacturing overhead for the year was underapplied by $12,500, and the actual manufacturing overhead was $227,750. The predetermined overhead rate for the year must have been closest to:
1)$12.96
2)$12.30
3)$13.24
4)$11.43