Slocombe and Quarmby Limited's Overhead Budget for the 20X4 Financial

Slocombe and Quarmby Limited's overhead budget for the 20X4 financial year shows a total of £3 360 000, of which 30% is classified as selling and administration overhead, with the remainder being production overhead. Estimated production and sales for the year is 600 000 units.Each unit requires 1.5 machine hours.Production overhead is recovered per machine hour.
What is the budgeted production overhead recovery rate for 20X4 (to the nearest penny) ?

A) £3.92
B) £2.61
C) £3.73
D) £5.88