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Yellowcap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volumenumber of units 8,000

Yellowcap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volumenumber of units 8,000 Denominator volumepercent of capacity 80 % Denominator volumestandard direct labor hours (DLHs) 27,000 Budgeted variable factory overhead cost at denominator volume $ 102,100 Total standard factory overhead rate per DLH $ 15.10 During 2019, Bluecap worked 31,000 DLHs and manufactured 9,500 units. The actual factory overhead cost for the year was $11,000 greater than the flexible budget amount for the units produced, of which $5,000 was due to fixed factory overhead. In preparing a budget for 2020 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be "practical capacity"), to manufacture 8,900 units at a budgeted total of 26,700 DLHs. Under the assumption that the total budgeted fixed overhead for 2020 is the same as it was for 2019, what is the standard fixed overhead application rate per DLH (to two (2) decimal places) for Bluecap Co. for 2020? (Round your intermediate calculation to 2 decimal places.)

a. $6.15.

b. $6.35.

c. $8.75.

d. $11.15.

e. $11.45.

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