The Mzarek Company's budgeted annual indirect labour cost is: $7,200 + $0.75 per direct labour hour. Operating budgets for the current month are based on 30,000 hours of budgeted direct labour hours. Budgeted indirect labour cost is:
A) $22,500
B) $29,700
C) $22,000
D) $23,100

Question

Quizplus · Accepted Answer

The calculation for the budgeted indirect labour cost for the current month is as follows:

Budgeted indirect labour cost = $7,200 + ($0.75 x 30,000)
Budgeted indirect labour cost = $7,200 + $22,500
Budgeted indirect labour cost = $29,700

Therefore, the best choice is B, which is $29,700.

The Mzarek Company's Budgeted Annual Indirect Labour Cost Is: $7,200