Hawkeyes Company Had the Following Information The Budgeted Factory- Overhead Rate Using Production Setups as the factory

Hawkeyes Company had the following information: $\begin{array}{lr}\text { Budgeted variable factory overhead }&\$66,000\\\text { Budgeted fixed factory overhead }&\$46,500\\\\\text { Actual variable factory overhead }&\$67,500\\\text { Actual fixed factory overhead }&\$52,500\\\\\text { Budgeted cost driver activity levels: }\\\text { Direct- labor hours } & 30,000 \\\text { Direct- labor costs } & \$ 150,000 \\\text { Machine hours } & 60,000 \\\text { Productionsetups } & 15,000\\\\\text { Actual cost driver activity levels: }\\\text { Direct- labor hours } & 31,500 \\\text { Direct-labor costs } & \$ 165,600 \\\text { Machine hours } & 56,190 \\\text { Productionsetups } & 14,280\end{array}$ The budgeted factory- overhead rate using production setups as the cost driver is:

A) $7.88
B) $8.40
C) $8.00
D) $7.50