Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) .The following data were taken from the records of Big Sky Ltd., a manufacturing company.The company has been calculating the actual indirect cost allocation rate using direct labour hours as the allocation base.
-What is the actual indirect cost rate at Big Sky Ltd.using machine hours as the allocation base?

A) $60.67
B) $10.67
C) $7.89
D) $4.05
E) $3.84