Adams Corporation has developed the following flexible budget formula for annual indirect labour cost: Total cost = $4800 + 50c per machine hour. Operating budgets for the current month are based on 20 000 hours of planned machine time. Calculate the amount of indirect labour costs included in this planning budget.
A) $7200
B) $10 000
C) $14 400
D) None of the given answers

Question

Quizplus · Accepted Answer

The correct calculation based on the formula provided is: Total cost = $4800 + ($0.50 * 20,000 hours) = $4800 + $10,000 = $14,800. None of the given answers matches this calculation.

Adams Corporation Has Developed the Following Flexible Budget Formula for Annual