Nemes Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The fixed component of the predetermined overhead rate is closest to:

A) $9.10 per labor-hour
B) $5.35 per labor-hour
C) $6.36 per labor-hour
D) $10.81 per labor-hour

Cooling Coil

A component used in refrigeration and air conditioning systems to transfer heat and cool down air or liquids passing through it.

Predetermined Overhead Rate

A rate calculated by dividing the estimated total manufacturing overhead cost by the estimated job base for a specific period, used to allocate overhead costs to products.

Commercial Refrigerators

Refrigeration equipment designed specifically for commercial use to store perishable goods under controlled temperatures.