Luke employs 20 professional cleaners. Budgeted costs total $1,800,000 of which $1,550,000 is direct costs. Budgeted indirect costs are $750,000 and actual indirect costs were $795,800
Budgeted professional labor-hours are 1,000,000 and actual hours were 1,218,000. What is the budgeted direct cost-allocation rate?
A) $1.80 per hour
B) $1.7857 per hour
C) $0.75 per hour
D) $1.55 per hour
Answer: D
Business