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A company incurred a fixed cost of $500,000 per year and has three levels of productions; low, medium, and high. At the low level of
A company incurred a fixed cost of $500,000 per year and has three levels of productions; low, medium, and high. At the low level of production, the company consumes a variable cost of $100,000 per year, and $160,000 for the medium level, and 200,000 for the high level. What are the low, medium, and high indirect-cost rates if budgeted labor-hours are 10,000 for low level, 10,000 for the medium level and 12,000 for high-output levels? Select one: O a. 52.00 per hour: $2.50 per hour, and 1.70 per hour b. $2.50 per hour; $2.00 per hour, and 1.70 per hour OC. $10,00 per hour; $16.00 per hour, and 16.70 per hour d. $12.5 per hour: $16.00 per hour, and 16.70 per hour e $16.00 per hour; $10.00 per hour, and 16.7 per hour Next page
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