The Phillips Company's budgeted annual indirect labor cost is: $7,200 + $0.75 per direct labor hour. Operating budgets for the current month are based on 30,000 hours of budgeted direct labor hours. Budgeted indirect labor cost is

Question

Quizplus · Accepted Answer

Using the given formula, we can calculate the budgeted indirect labor cost as follows: 
Budgeted indirect labor cost = $7,200 + ($0.75 x 30,000) 
Budgeted indirect labor cost = $7,200 + $22,500 
Budgeted indirect labor cost = $29,700 
Therefore, the answer is B, $29,700.

The Phillips Company's Budgeted Annual Indirect Labor Cost Is: $7,200