A Manufacturer of Playground Equipment Has a Standard Costing System

A manufacturer of playground equipment has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
$\begin{array}{|l|r|}\hline \text { Denominator Level of Activity } & 3,000 \mathrm{MHs} \\\hline \text { Fixed Overhead Cost } & \$ 40,650 \\\hline\end{array}$
The following data pertain to operations for the most recent period:
$\begin{array}{|l|r|}\hline \text { Actual Hours } & 3,400 \mathrm{MHs} \\\hline \text { Standard Hours Allowed for the Actual Output } & 3,172 \mathrm{MHs} \\\hline \text { Actual Total Fixed Overhead Cost } & \$ 41,600 \\\hline\end{array}$
-What was the predetermined fixed overhead rate,rounded to the nearest cent?

A) $11.94.
B) $12.24.
C) $13.55.
D) $13.87.