Wednesday, June 29, 2011

What is the estimate of total labor costs at Carroll Company when 10,000 labor-hours are used?

ACCOUNTING

Multiple Choice

For Carroll Company, labor-hours are 12,500 and wages $47,000 at the high point of the relevant range, and labor-hours are 7,500 and wages $35,000 at the low point of the relevant range.


What is the estimate of total labor costs at Carroll Company when 10,000 labor-hours are used?

a. $17,000

b. $41,000

c. $21,167

d. $27,000

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