LaFlame Corporation uses a job order costing system with a single plantwide predetermined overhead rate based on direct labor hours. The companys predetermined overhead rate for the current year was based on the following data:

Total fixed manufacturing overhead	$ 540,000
Variable manufacturing overhead per direct labor hour	$ 2.80
Total direct labor hours	90,000

LaFlames predetermined overhead rate for the upcoming year is:

	a.	$8.80 per direct labor hour.
	b.	$2.80 per direct labor hour.
	c.	$6.00 per direct labor hour.
	d.	$540,000 regardless of direct labor hours.