What must be the flexible budget cost formula for indirect

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Problem 1: At Jacobson Company, indirect labour is a variable cost that varies with direct labour hours. Last month's performance report showed that total actual indirect labour cost was $5,780 for the month and that the associated spending variance was $245 favourable. If 24,100 direct labour hours were actually worked last month, what must be the flexible budget cost formula for indirect labour (per direct labour hour)?

A) $0.25.

B) $0.35.

C) $0.20.

D) $0.30.

Reference no: EM132610269

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