Kris Company calculates its predetermined rates using practical volume, which is 300,000 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 $567,000 of which $ 252,000 is fixed overhead. The actual results for the year are as follows

Units produced	28,000
Direct Lobar	86,800 hours @ 12/hour
Variable overhead	308,140
Fixed overhead	241,304

The predetermined variable overhead rate is (Round to nearest decimal):

a. $2.80 per direct labor hour.

b. $3.50 per direct labor hour.

c. $2.78 per direct labor hour.

d. $3.55 per direct labor hour.

e. None of these choices are correct.