Assume (1) actual machine-hours worked during the period of 54,000 hours, (2) estimated machine-hours to be worked during the coming period of 55,000 hours, (3) manufacturing overhead applied to production during the period of $432,000, and (4) estimated fixed manufacturing overhead of $330,000. The estimated variable manufacturing overhead cost per machine-hour is closest to:

A. $3.00

B. $1.89

C. $1.85

D. $2.00