At Rost Corporation, Indirect Labor Is a Variable Cost That

question 469

Multiple Choice

At Rost Corporation, indirect labor is a variable cost that varies with direct labor-hours. Last month's performance report showed that actual indirect labor cost totaled $7,540 for the month and that the associated spending variance was $560 F. If 10,800 direct labor-hours were actually worked last month, then the flexible budget cost formula for indirect labor must be (per direct labor-hour) closest to:

• A) $0.75
• B) $0.80
• C) $0.85
• D) $0.65

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Definitions:

D. Melanogaster

Drosophila melanogaster, a species of fruit fly used extensively in genetic research due to its simple genetics and short life cycle.

Arabidopsis

A small flowering plant, Arabidopsis thaliana, used as a model organism in plant genetics and molecular biology.

Plant Development

The process by which plants grow and differentiate, from germination to senescence, shaped by environmental and genetic factors.

M. Musculus

The scientific name for the common house mouse, an important model organism in biological and medical research.