Rupe Company has two departments: Machining and Assembly. The following estimates are for the coming year:

A predetermined manufacturing cost driver rate for the Machining Department based on the number of machine hours in that department is:

Question 5 options:

A)	$ 4 per machine hour.

B)	$5 per machine hour.

C)	$20 per machine hour.

D)	$40 per direct labor hour.

Machining Assembly 30,000 40,000 150,000 200,000 Direct labor hours Machine hours Manufacturing overhead costs $750,000 $800,000