The Normal Capacity of Noel Company Is 4,000 Units Per

The normal capacity of Noel Company is 4,000 units per month. At this volume, budgeted fixed and variable factory overhead are $16,000 and $20,000, respectively. In May, actual production was 4,200 units and actual overhead incurred was $37,900. What is the factory overhead application rate at the actual level of production (rounded to the nearest penny) ?

A) $9.00
B) $8.81
C) $9.02
D) $8.57