Sussex Company Uses a Standard Cost System and Prepared the Following

Multiple Choice

Sussex Company 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.