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The Malcolm Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard direct labor-hours (DLHs).

The Malcolm Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard direct labor-hours (DLHs). The standards call for 6 hours of direct labor per unit produced. The following data pertain to the company's manufacturing overhead for the month of July:

Actual fixed manufacturing overhead costs incurred $28,420
Denominator activity 4,210 DLHs
Number of units produced 3,600 units
Budget variance $3,160 Unfavorable

The Fixed component of the predetermined overhead rate for June is: (Round your answer to 2 decimal places.)

$6.75

$6.77

$6.00

$6.11

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