Rocky Company Had the Following Information Assume Production Setups Are the Cost Driver for Factory Overhead

Multiple Choice

Rocky Company had the following information:
$\begin{array}{ll}\text { Budgeted factory overhead costs } & \$ 90,000 \\\text { Actual factory overhead costs } & \$ 80,000 \\\text { Budgeted production setups } & 12,000 \\\text { Actual production setups } & 11,500\end{array}$
Assume production setups are the cost driver for factory overhead costs.The budgeted factory overhead rate is ________.

A) $6.25 per setup
B) $6.52 per setup
C) $6.78 per setup
D) $7.50 per setup