Barrick Company Has Established a Flexible Budget for Manufacturing Overhead $\text { Variable costs (total): }$

Barrick Company has established a flexible budget for manufacturing overhead based on direct labour-hours. Total budgeted costs at 200,000 direct labour-hours are as follows $\text { Variable costs (total) : }$
$\begin{array}{ll}\text { Packing supplies } & £ 120,000 \\\text { Indirect labour } & £ 180,000 \\\text { Fixed costs (total) : } & \\\text { Utilities } & £ 100,000 \\\text { Rent } & £ 40,000 \\\text { Insurance } & £ 20,000\end{array}$
-The flexible budget for factory overhead would show that the variable factory overhead cost per direct labour-hour is

A) £1.80.
B) £1.50.
C) £0.90.
D) £0.60.

Correct Answer:

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