Nadelson Incorporated has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted variable manufacturing overhead Budgeted fixed manufacturing overhead Total Budgeted manufacturing overhead Budgeted production $ 54,000 $ 21,000 $ 75,000 25,000 units 30,000 units 1.80 labor-hours Budgeted labor hours for the period 45,000 labor-hours Actual Production Standard hours per unit The variable component of the predetermined overhead rate is closest to: $1.26 per labor-hour $1.57 per labor-hour $1.20 per labor-hour $1.64 per labor-hour