Question - At Cady Company, maintenance is a variable cost that varies directly with machine-hours. The performance report for June showed that actual maintenance costs totaled $9,600 and that the associated spending variance was $400 unfavorable. If 8,000 machine-hours were actually worked during June, the budgeted maintenance cost per machine-hour was:
A) $1.30
B) $1.25
C) $1.20
D) $1.15