Cowboys Company Had the Following Information The Budgeted Factory- Overhead Rate Using Machine Hours as the factory

Cowboys Company had the following information: $\begin{array}{ll}\text { Budget ed factory overhead } & \$ 80,000 \\\text { Actual f actory overhead } & \$ 82,000 \\\text { Budgeted: M achine hours } & 40,000 \\\text { Actual: M achine hours } & 39,500\end{array}$ The budgeted factory- overhead rate using machine hours as the cost driver is:

A) $2.875
B) $2.000
C) $2.025
D) $2.050