The following budget data pertain to the Machining Department of Yolkenverst Co.: Maximum capacity 58,000 units 2.50 Machine hours per unit Variable factory overhead $ Fixed factory overhead 3.90 per machine hour $434,900 Save & Exit Sub 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 fixed overhead application rate for the Machining Department (to two decimal places) is: Multiple Choice $3.53 per machine hour. $3.60 per machine hour. $3.02 per machine hour