At Jacobson Company,indirect Labor Is a Variable Cost That Varies

question 220

Multiple Choice

At Jacobson Company,indirect labor is a variable cost that varies with direct labor-hours.Last month's performance report showed that actual indirect labor cost totaled $5,780 for the month and that the associated spending variance was $245 F.If 24,100 direct labor-hours were actually worked last month,then the flexible budget cost formula for indirect labor must be (per direct labor-hour) :

• A) $0.20
• B) $0.25
• C) $0.30
• D) $0.35

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