At Jacobson Company, Indirect Labor Is a Variable Cost That

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 Favorable. 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

Correct Answer:

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