At Jacobson Company, indirect labor is a variable cost that varies with direct labor-hours. Last month's performance report showed that actual indirect labor cost totaled $5,780 for the month and that the associated spending variance was $245 F. If 24,100 direct labor-hours were actually worked last month, then the flexible budget cost formula for indirect labor must be (per direct labor-hour):
A. $0.25
B. $0.35
C. $0.20
D. $0.30
Answer: A
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Indicate whether this statement is true or false.
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A) market conditions on the day of payment B) market interest rate C) stated interest rate D) effective interest rate