In the Goblette Manufacturing Company, indirect labor is budgeted for $108,000 and factory supervision is budgeted for $36,000 at normal capacity of 160,000 direct labor hours. If 180,000 direct labor hours are worked, flexible budget total for these costs is:
a) $148,500.
b) $144,000.
c) $162,000.
d) $157,500.
Answer: d) $157,500.
Business
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