The following budget data pertain to the Machining Department of Grind Company: The company prepared the budget at 85% of the maximum capacity level. The department uses machine hours as the basis for applying standard factory overhead costs to production (outputs). The standard foxed overhead application rate for the Machining Department (to two decimal places) is: Multiple Choice $870 per machine hour. $4.28 per mochine hour $367 per machine hour. $3.09 per machine hour $3.60 per machine hour