QUESTION 3 Bella Company calculated an indirect-cost rate of $12.50 per labor hour for fringe benefits for use in their normal costing system. At the end of the year, the actual cost of fringe benefits was $980,000. The total of labor hours worked for the year was the same amount as budgeted, 70,000 hours. If job #777 required the use of 15 labor hours and the company used the adjusted allocation rate approach, by what amount would the cost of Job #777 change? a. $22.50 b. $560.00 c. $281.25 d. $20.50