At Jacobson Company,indirect Labour Is a Variable Cost That Varies

Multiple Choice

At Jacobson Company,indirect labour is a variable cost that varies with direct labour hours.Last month's performance report showed that total actual indirect labour cost was $5,780 for the month and that the associated spending variance was $245 favourable.If 24,100 direct labour hours were actually worked last month,what must be the flexible budget cost formula for indirect labour (per direct labour hour) ?

A) $0.20.
B) $0.25.
C) $0.30.
D) $0.35.