The Phillips 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:

Question

Quizplus · Accepted Answer

Budgeted indirect labour cost = $7,200 + ($0.75 x 30,000) = $7,200 + $22,500 = $29,700. Therefore, the correct answer is B.

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