At IT Company, maintenance cost is exclusively a variable cost that varies directly with machine-hours. The performance report for July showed that actual maintenance costs totaled P9,800 and that the...

At IT Company, maintenance cost is exclusively a variable cost that varies directly with machine-hours. The performance report for July showed that actual maintenance costs totaled P9,800 and that the associated spending variance was P200 unfavorable. If 8,000 machine hours were actually worked during July, the budgeted maintenance cost per machine-hour was:

A.P1.20

B.P1.25

C.P1.275

D.P1.225