1. Bryan Bulbs grows, dries, sorts, and packages bulb plants that are shipped around the world. The budgeted conversion costs for its packaging operations are $787,500 (consisting of items such as direct labor and power), and the practical capacity of the operation is 150,000 machine hours. What is the conversion rate?

a.$5.25 per machine hour

b.$6.25 per machine hour

c.$5.75 per machine hour

d.$6.75 per machine hour