The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing.

	Variable manufacturing overhead costs	$92,400
	Fixed manufacturing overhead costs	$55,440
	Normal production level in labor hours	30,800
	Normal production level in units	5,775
	Standard labor hours per unit	4

During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Fergie's total overhead rate is

$6.53.

$2.40.

$4.00.

$6.40.