Sky High Company Has Two Departments, X and Y

Multiple Choice

Sky High Company has two departments, X and Y. The following estimates are for the coming year:

The budgeted indirect-cost driver rate for Y based on the number of machine-hours is in excess of X by ________. (Round interim and the final answer to the nearest cent.)

A) $6.50 per machine-hour
B) $21.50 per machine-hour
C) $1.50 per machine-hour
D) $16.50 per machine-hour