At Worthe Corporation, Indirect Labor Is a Variable Cost That

question 115

Multiple Choice

At Worthe 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 $7,920 for the month and that the associated spending variance was $240 F. If 10,200 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)$0.95
• B)$0.90
• C)$0.80
• D)$0.85

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Definitions:

Retention

The ability to keep or hold information in memory.

Memory

The faculty of the mind by which information is encoded, stored, and retrieved when needed, allowing past experiences to influence future behavior and decision-making.

Information-Processing Model

A framework that compares human cognition to the way computers process information, emphasizing stages of input, processing, and output.

Conceptualization

The process of defining clear, detailed concepts and terms for use in a study, ensuring mutual understanding and specificity in discussion or research.