3. USC Company has the following information available:

Budgeted factory overhead costs $90,000

Actual factory overhead costs $80,000

Budgeted direct labor hours 20,000

Actual direct labor hours 21,000

Assume direct labor hours are the cost driver of factory overhead costs. The budgeted factory overhead rate is ________.

A) $3.57 per direct labor hour

B) $3.81 per direct labor hour

C) $4.00 per direct labor hour

D) $4.50 per direct labor hour