The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead cost Actual machine hours Standard machine hours allowed for the units manufactured Denominator volume-machine hours Standard variable overhead rate per machine hour $26,000 $11,000 $12,000 7,000 4,200 7,500 $ 3 The standard fixed overhead application rate, to two (2) decimal places, is: $0.60 per machine hour. $1.60 per machine hour. J $2.60 per machine hour. O $3.60 per machine hour. $4.60 per machine hour