Litchfield Industries Gathered the Following Information for the Month Ended

Multiple Choice

Litchfield Industries gathered the following information for the month ended June 31:
The static budget volume is 5,500 units:
Overhead flexible budget:

Actual production was 12,000 units.Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs.Actual machine hours worked were 16,000 hours.
What is the standard variable overhead rate per machine hour?

A) $3.50
B) $4.31
C) $2.47
D) $3.86