Theory Enterprises uses a standard cost system and prepared the following budget for May when 24,000 machine hours of activity were anticipated: variable overhead, $86,400; fixed overhead: $576,000. Actual data for May were: Standard machine hours allowed for output attained: 25,000 Actual machine hours worked: 24.000 Variable overhead incurred: $90,000 Fixed overhead incurred: $600,000 The standard variable overhead rate for May is: Multiple Choice $3.60. O $3.75 O $4.60 $6.67 $6.94