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

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

Correct Answer:

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