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, $48,000; fixed overhead: $240,000. Actual data for May were:Standard machine hours allowed for output attained: 25,000Actual machine hours worked: 24,000Variable overhead incurred: $50,000Fixed overhead incurred: $250,000The standard variable overhead rate for May is:

A. $2.08.
B. $3.00.
C. $5.00.
D. $2.00.
E. $5.21.


Answer: D

Business

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