Question: At Amaan Company, indirect labor is treated as a variable cost that varies with direct labor-hours. Last month's performance report showed that actual indirect labor
At Amaan Company, indirect labor is treated as a variable cost that varies with direct labor-hours. Last month's performance report showed that actual indirect labor cost totaled Rs.578,000 for the month and that the spending variance for that cost was Rs.27,000 F. If 24,100 direct labor-hours were actually worked last month, then what would be the variable cost per direct labor-hour for the flexible budget?
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