At Overland Company,maintenance Cost Is Exclusively a Variable Cost That

Multiple Choice

At Overland Company,maintenance cost is exclusively a variable cost that varies directly with machine hours.The performance report for July showed that total actual maintenance costs were $9,800 and that the associated spending variance was $200 unfavourable.If 8,000 machine hours were actually worked during July,what was the budgeted maintenance cost per machine hour?

A) $1.200.
B) $1.225.
C) $1.250.
D) $1.275.