Closet Depot, Inc. had the following estimated costs for next year:
Sales commissions $600,000
Direct labor 440,000
Salary of production supervisor 280,000
Rent on factory equipment 128,000
Direct materials 120,000
Advertising expense 88,000
Indirect materials 40,000
The company estimates that 64,000 direct labor hours will be worked and 80,000 machine hours will be incurred during the year.
If overhead is applied on the basis of direct labor hours, what will be the overhead rate per hour?