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 $$5$ per direct labor hour $($including utilities, indirect materials, and indirect labor$).$ Budgeted direct labor hours are $3,600$ hours for the period. Fixed overhead amounts include the following: Factory rent $$5,000$; Factory supervisor salary $$4,800$; Depreciation $$6,400$; Insurance $$1,200$; and Factory security $$2,000.$

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

Select one:

a$.$

None of these options are correct.

b$.$

$$5\mathrm{.}389$

c$.$

$$6\mathrm{.}666$

d$.$

$$11\mathrm{.}666$

e$.$

$$5\mathrm{.}000$