Nanjones Company manufactures a line of products distributed nationally through wholesalers. Presented below are planned manufacturing data for the year and actual data for November of the current year. The company applies overhead based on planned machine hours using a predetermined annual rate.

Planning Data

                                                 Annual       November

Fixed manufacturing overhead                $1,200,000      $100,000

Variable manufacturing overhead               2,400,000       220,000

Direct labor hours                                  48,000         4,000

Machine hours                                    240,000        22,000

Data for November

Direct labor hours (actual)                          4,200  

Direct labor hours (plan based on output)           4,000  

Machine hours (actual)                            21,600  

Machine hours (plan based on output)             21,000  

Fixed manufacturing overhead                  $101,200  

Variable manufacturing overhead               $214,000  

The predetermined overhead application rate for Nanjones Company is

A. $5.00.

B. $10.00.

C. $25.00.

D. $15.00.