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

question 209

Multiple Choice

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

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

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