A manufacturing company uses a job order cost accounting system. Overhead is app

Question

A manufacturing company uses a job order cost accounting system. Overhead is applied using direct labor hours as an allocation base. Total costs for a particular job were $5,720. Of this amount $2,600 was direct labor and $1,040 was direct material. The company pays $26 per hour of direct labor and $2 per pound of direct materials. What is this company's overhead rate?
$26.00 per direct labor hour.
$4.00 per direct labor hour.
$20.80 per direct labor hour.
$2,080 per direct labor hour.
$80.00 per direct labor hour.

Don't understand how to get any of these as an answer.

Explanation / Answer

Total costs for the Job                        $5,720
Less : Direct material cost  $1,040
Less : Direct Labor costs     $2,600       $3,640
Total overhead costs                            $2,080
Total Direct labor hours $2,600 / $26    100 hrs.
Overhead rate per DLH $2,080 / 100    $20.80 per DLH

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