Combs Manufacturing Company uses predetermined overhead rates based on direct labour cost. The Company budgeted to spend $750,000 on direct labour during the period. Combs estimates annual variable overhead to be $225,000 and annual fixed overhead to be $900,000. What are Combs' overhead variable and fixed rates?

$0.30 variable and $1.20 fixed

$1.80 variable and $0.83 fixed

$1.50 variable and $1.50 fixed

$0.67 variable and $0.67 fixed

none of the above