1. Budgeted fixed indirect costs remain constant at $150000 per month. During high output months variable indirect costs are budgeted at $120 000. During low output months budgeted variable indirect costs are budgeted at $120 000, and during low output months budgeted variable costs are $60 000. what are the respective high and low indirect cost rates if budgeted professional labour hours are 6000 for high output months and 2000 for low output months? show work.

2. fixed costs remain constant at $200 000 per month. during high output months variable costs are $160000 and during low output months variable cost are $40000. what are the respective high and low indirect cost allocation rates if professional labour hours are 8000 for high output months and 2000 for low imput months? show work.

3.a law office employes full time attorneys and five paraprofessionals. for the current year indirect costs were budgeted at $225000, but actually amounted to $350000. Direct and indirect costs are applied on a professional labour hour basis which include both attorney and paraprofessional hours. total budgeted labour hours were 25000, however, actual labour hours were 30000. what is the actual indirect-cost rate, if a client used 5000 professional labour hours? show work

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High and Low Indirect Cost Rates with Variable Indirect Costs High output month Fixed indirect costs ... View the full answer