Reference no: EM132756814

Question - 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