The following information for the past year is available from Gas Company, 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 $ 28,000 $ 11,000 $ 10,000 7,000 4,700 7,500 $ 3 The standard fixed overhead application rate, to two (2) decimal places, is