Theory Enterprises uses a standard cost system and prepared the following budget for May when 23,000 machine hours of activity were anticipated: variable overhead, $75,900; fixed overhead: $483,000. Actual data for May were: Standard machine hours allowed for output attained: 24,000 Actual machine hours worked: 23,000 Variable overhead incurred: $79,200 Fixed overhead incurred: $504,000 The standard variable overhead rate for May is: