Techniques, Inc. uses a predetermined manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs. The following information has been collected for the previous year:
Direct materials
$150,000
Direct labor
200,000
Sales commissions
100,000
Indirect labor
50,000
Rent on office equipment
25,000
Depreciation - factory building
75,000
Utilities - factory
125,000
Techniques used 25,000 direct labor hours and 50,000 machine hours during the previous year. What is the predetermined overhead rate per direct labor hour?