Budgeted Fixed Indirect Costs Remain Constant at $150,000 Per Month

question 152

Multiple Choice

Budgeted fixed indirect costs remain constant at $150,000 per month.During high-output months variable indirect costs are budgeted at $120,000, and during low-output months budgeted variable costs are $60,000.What are the respective high and low indirect cost rates if budgeted professional labour-hours are 6,000 for high-output months and 2,000 for low-output months?

• A)$31.25 per hour, $87.50 per hour
• B)$45.00 per hour, $95.00 per hour
• C)$45.00 per hour, $105.00 per hour
• D)$56.20 per hour, $105.00 per hour
• E)$59.00 per hour, $105.00 per hour

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