Olympic Duel Ltd budgeted annual indirect labour cost is: $7,200 + $1.50 per direct labour hour. Operating budgets for the current month are based on 15,000 hours of budgeted direct labour hours. Budgeted indirect labour cost is:

Question

Quizplus · Accepted Answer

The budgeted indirect labour cost is calculated by adding the fixed cost ($7,200) to the variable cost, which is $1.50 per direct labour hour for 15,000 hours ($1.50 * 15,000 = $22,500). Therefore, the total budgeted indirect labour cost is $7,200 + $22,500 = $29,700.

Olympic Duel Ltd Budgeted Annual Indirect Labour Cost Is: $7,200