Question: At 4 0 , 0 0 0 direct labor hours, the flexible budget for indirect labor is $ 1 6 0 , 0 0 0

At 40,000 direct labor hours, the flexible budget for indirect labor is $160,000. If $172,000 of indireet labor costs are incurred at 44,000 direct labor hours, the flexible budget report should show the following difference for indirect labor
$4,000 favorable.
54,000 unfaverable.
$122000 unfavorable.
$12,000 favorable.
At 4 0 , 0 0 0 direct labor hours, the flexible

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