Fixed costs remain constant at $450,000 per month. During high-output months variable costs are $300,000, and during low-output months variable costs are $125,000. What are the respective high and low indirect-cost rates if budgeted professional labor-hours are 24,000 for high-output months and 5,000 for low-output months?

High indirect-cost rate is $31.25

Low indirect-cost rate is  $115

Explanation:

It is noteworthy that the indirect cost-rate refers to the sum of variable cost per hour+fixed cost per hour

High indirect-cost rate=variable cost per hour+fixed cost per hour

High output:

variable cost per hour=total variable costs/number of hours

fixed cost per hour=Fixed costs/number of hours

variable cost per hour=($300,000/24,000)=$12.5

fixed cost per hour =($450,000/24000)=$18.75

high indirect cost-rate=$12.5+$18.75=$31.25

Low output:

variable cost per hour=total variable costs/number of hours

fixed cost per hour=Fixed costs/number of hours

variable cost per hour=($125,000/5,000)=$25.00

fixed cost per hour =($450,000/5,000)=$90

low indirect cost-rate=$25+$90=$115

a

explanation:

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hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi