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If managers based their bugeted indirect costs on direct-labor hours, they would compute the budgeted indirect cost rate as: Budgeted variable-labor costs / budgeted variable-labor

If managers based their bugeted indirect costs on direct-labor hours, they would compute the budgeted indirect cost rate as:

Budgeted variable-labor costs / budgeted variable-labor hours.

Budgeted actual direct-labor costs / budgeted total direct-labor hours.

Budgeted total direct-labor costs / budgeted total indirect-labor costs.

Budgeted total cost in indirect cost pool / budgeted total direct-labor hours.

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