Elite Stationary Inc.employs 20 full-time employees and 10 trainees.Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and trainee hours.Following is information for 2018:

What are the budgeted direct-cost rate and the budgeted indirect-cost rate,respectively,per professional labor-hour? (Round the final answers to the nearest cent. )

Question

Elite Stationary Inc.employs 20 full-time employees and 10 trainees.Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and trainee hours.Following is information for 2018:

What are the budgeted direct-cost rate and the budgeted indirect-cost rate,respectively,per professional labor-hour? (Round the final answers to the nearest cent. )

Quizplus · Accepted Answer

[($200,000 × 20)+ ($35,000 × 10)] / 20,000 = $217.50 budgeted direct rate
$300,000 / 20,000 = $15.00 budgeted indirect rate