Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year:

Total budgeted fixed overhead cost for the year	$ 318,000
Actual fixed overhead cost for the year	$ 276,000
Budgeted direct labor-hours	60,000
Actual direct labor-hours	56,000
Standard direct labor-hours allowed for the actual output	58,000

The fixed portion of the predetermined overhead rate is closest to:

A) $5.30

B) $4.90

C) $5.68

D) $5.23