The Frame Shoppe Reported That Fixed Costs Remain Constant at $450,000

The Frame Shoppe reported that fixed costs remain constant at $450,000 per month.During high-output months variable costs are $315,000,and during the low-output months variable costs are $60,000.What are the high and low indirect-cost rates if budgeted professional labor-hours are 15,000 for high-output months and 1,857 for low-output months?
Required:
Compute the budgeted indirect cost rate for the high-output month and the low-output month.

A) $51 per hour ;$201 per hour
B) $60 per hour;$206 per hour
C) $80 per hour;$210 per hour
D) $85 per hour;$215 per hour
E) $90 per hour;$220 per hour

Correct Answer:

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