Question
Elite Stationary Inc. employs 20 full-time employees and 10 trainees. Direct and indirect costs are applied on a professional labor-hour basis that includes both employee
Elite Stationary Inc. employs 20 full-time employees and 10 trainees. Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and trainee hours. Following is information for 2018:
Budget Actual
Indirect costs $300,000 $400,000
Annual salary of each employee $200,000 $210,000
Annual salary of each trainee $35,000 $40,000
Total professional labor-hours 20,000 dlh 40,000 dlh
What are the budgeted direct-cost rate and the budgeted indirect-cost rate, respectively, per professional labor-hour? (Round the final answers to the nearest cent.)
Question 6 options:
| $135.00; $10.00 |
| $217.50; $15.00 |
| $115.00; $10.00 |
| $200.00; $16.75 |
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