In the Dichter Co., indirect labor is budgeted for $72,000 and factory supervision is budgeted for $24,000 at normal capacity of 160,000 direct labor hours. If 180,000 direct labor hours are worked, flexible budget total for these costs is A) $96,000. OB) $105,000. OC) $99,000. D) $108,000.

In the Dichter Co., indirect labor is budgeted for $72,000 and factory supervision is budgeted for $24,000 at normal capacity of 160,000 direct labor hours. If 180,000 direct labor hours are worked, flexible budget total for these costs is A) $96,000. OB) $105,000. OC) $99,000. D) $108,000.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.7P

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Question

In the Dichter Co., indirect labor is budgeted for $72,000 and factory supervision is
budgeted for $24,000 at normal capacity of 160,000 direct labor hours. If 180,000
direct labor hours are worked, flexible budget total for these costs is
OA) $96,000.
OB) $105,000.
OC) $99,000.
D) $108,000.

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