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Fixed costs remain constant at​ $450,000 per month. During​ high-output months variable costs are​ $300,000, and during​ low-output months variable costs are​ $125,000. What are the respective high and low​ indirect-cost rates if budgeted professional​ labor-hours are​ 24,000 for​ high-output months and​ 5,000 for​ low-output months? A. ​$31.25 per​ hour; $115.00 per hour B. ​$18.75 per​ hour; $25.00 per hour C. ​$31.25 per​ hour; $31.25 per hour D. ​$12.50 per​ hour; $115.00 per hour

Fixed costs remain constant at​ $450,000 per month. During​ high-output months variable costs are​ $300,000, and during​ low-output months variable costs are​ $125,000. What are the respective high and low​ indirect-cost rates if budgeted professional​ labor-hours are​ 24,000 for​ high-output months and​ 5,000 for​ low-output months? A. ​$31.25 per​ hour; $115.00 per hour B. ​$18.75 per​ hour; $25.00 per hour C. ​$31.25 per​ hour; $31.25 per hour D. ​$12.50 per​ hour; $115.00 per hour

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fixed costs remain constant at​ $450,000 per month. During​ high-output months variable costs are​ $300,000, and during​ low-output months variable costs are​ $125,000. What are the respective high and low​ indirect-cost rates if budgeted professional​ labor-hours are​ 24,000 for​ high-output months and​ 5,000 for​ low-output months?

A.

​$31.25 per​ hour; $115.00 per hour

B.

​$18.75 per​ hour; $25.00 per hour

C.

​$31.25 per​ hour; $31.25 per hour

D.

​$12.50 per​ hour; $115.00 per hour

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