Question:
What is the formula to calculate Budgeted hourly rate?
What is the formula to calculate Budgeted hourly rate?
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Understanding how to calculate the Budgeted Hourly Rate helps in managing labor costs.
Updated On: Feb 27, 2025
- \( BHR = (DDE - IDE)/DCH \)
- \( BHR = (DDE - IDE) \times DCH \)
- \( BHR = (DDE + IDE)/DCH \)
- \( BHR = (DDE + IDE) \times DCH \)
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The Correct Option is A
Solution and Explanation
The formula to calculate the Budgeted Hourly Rate (BHR) is \( BHR = (DDE - IDE) / DCH \), where DDE represents direct labor expenses, IDE represents indirect labor expenses, and DCH represents direct labor hours. This formula helps in calculating labor costs efficiently.
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