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.