Kris Company calculates its predetermined rates using practical volume, which is 325,000 units. The standard cost system allows 3 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead. The actual results for the year are as follows:

Units produced:	318,000
Direct labor:	965,000 hours @ $12.00/hour
Variable overhead:	$3,302,000
Fixed overhead:	$998,000

The predetermined fixed overhead rate is

	a.	$3.35 per direct labor hour.
	b.	$1.02 per direct labor hour.
	c.	$5.50 per direct labor hour.
	d.	$4.00 per direct labor hour.
	e.	None of these.