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Budgeted fixed indirect costs remain constant at $150,000 per month. During high-output months, variable indirect costs are budgeted at $120,000, and during low-output months, budgeted
Budgeted fixed indirect costs remain constant at $150,000 per month. During high-output months, variable indirect costs are budgeted at $120,000, and during low-output months, budgeted variable costs are $60,000.
What are the respective high and low indirect cost rates if budgeted professional labour hours are 9,000 for high-output months and 4,000 for low-output months?
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