The following budget data pertain to the Machining Department of Yolkenverst Co.:

Maximum capacity		59,000	units
Machine hours per unit		2.50
Variable factory overhead	$	3.00	per machine hour
Fixed factory overhead	$	435,600

The company prepared the budget at 95% 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

• $2.60 per machine hour.

• $3.11 per machine hour.

• $3.18 per machine hour.

• $3.79 per machine hour.

• $8.21 per machine hour.