Fixed costs remain constant at$450,000 per month. Duringhigh-output months variable costs are$300,000, and duringlow-output months variable costs are$125,000. What are the respective high and lowindirect-cost rates if budgeted professionallabor-hours are24,000 forhigh-output months and5,000 forlow-output months?

 

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To solve this problem we need to calculate the high and low indirectcost rates based on the given in... View the full answer