Mountain Trails manufactures backpacks for adventurers. Management is preparing budgets for the month, and is trying to determine the Overhead Budget amounts. Variable overhead is budgeted to be incurred at a rate of $$5$ per direct labor hour $($including utilities, indirect materials, and indirect labor$).$ Budgeted direct labor hours are $5,400$ hours for the period. Fixed overhead amounts include the following: Factory rent $$5,000$; Factory supervisor salary $$7,200$; Depreciation $$9,600$; Insurance $$1,800$; and Factory security $$3,000.$

What is the predetermined overhead rate $($applied on the basis of direct labor hours? $($Round to $3$ decimal places$)$

Select one:

a$.$

$$5\mathrm{.}000$

b$.$

$$10\mathrm{.}000$

c$.$

$$4\mathrm{.}926$

d$.$

$$15\mathrm{.}000$

e$.$

None of these options are correct.Mountain Trails manufactures backpacks for adventurers. Management is preparing budgets for the month, and is trying to determine the Overhead Budget amounts. Variable overhead is budgeted to be

incurred at a rate of $$5$ per direct labor hour $($including utilities, indirect materials, and indirect labor$).$ Budgeted direct labor hours are $5,400$ hours for the period. Fixed overhead amounts include the following:

Factory rent $$5,000$; Factory supervisor salary $$7,200$; Depreciation $$9,600$; Insurance $$1,800$; and Factory security $$3,000.$

What is the predetermined overhead rate $($applied on the basis of direct labor hours? $($Round to $3$ decimal places$)$

Select one:

a$.$ $$5\mathrm{.}000$

b$.$ $$10\mathrm{.}000x$

c$.$ $$4\mathrm{.}926$

d$.$ $$15\mathrm{.}000$

e$.$ None of these options are correct.