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?

a. $0.30 variable and $1.20 fixed

b. $1.80 variable and $0.83 fixed

c. $1.50 variable and $1.50 fixed

d. $0.67 variable and $0.67 fixed

e. none of the above