The budgeted direct-labor cost rate includes ________.
A) budgeted total costs in indirect cost pool
B) budgeted total direct-labor costs in the denominator
C) budgeted total direct-labor costs in the numerator
D) budgeted total direct-labor hours in the numerator

Question

Quizplus · Accepted Answer

The budgeted direct-labor cost rate calculation uses the budgeted total direct-labor costs in the numerator and the budgeted total direct-labor hours in the denominator. This yields a rate per hour that can be used to allocate direct-labor costs to production or other cost centers. The other options are not part of the calculation for the direct-labor cost rate.

The Budgeted Direct-Labor Cost Rate Includes ________