Theory Enterprises Uses a Standard Cost System and Prepared the Following

Multiple Choice

Theory Enterprises uses a standard cost system and prepared the following budget for May when 24,000 machine hours of activity were anticipated: variable overhead, $48,000; fixed overhead: $240,000.Actual data for May were: Standard machine hours allowed for output attained: 25,000 Actual machine hours worked: 24,000 Variable overhead incurred: $50,000 Fixed overhead incurred: $250,000 The standard variable overhead rate for May is:

A) $2.00.
B) $2.08.
C) $3.00.
D) $5.00.
E) $5.21.