Apparelle Co. developed the following equation to predict certain components of its budget for the coming period: Costs = $50,000 + ($5 x direct labor hours)    The $5 would approximate: a. total cost b. direct labor rate per hour c. fixed cost per direct labor hour d. variable costs per direct labor hour

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter7: Budgeting
Section: Chapter Questions
Problem 15EA: Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per...
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Apparelle Co. developed the following equation to predict certain components of its budget for the coming period: Costs = $50,000 + ($5 x direct labor hours)
  
The $5 would approximate:

a. total cost
b. direct labor rate per hour
c. fixed cost per direct labor hour
d. variable costs per direct labor hour

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