Elite Brands Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data: Production Volume: 6500 Units Budgeted variable overhead cost: $15,000 Budgeted direct labor hours: 600 hours At the end of the year, actual data were as follow: Production volume: 4000 units Actual variable overhead cost: $15,400 Actual direct labor hours: 495 hours How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent.) (a) $25.00

Elite Brands Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data: Production Volume: 6500 Units Budgeted variable overhead cost: $15,000 Budgeted direct labor hours: 600 hours At the end of the year, actual data were as follow: Production volume: 4000 units Actual variable overhead cost: $15,400 Actual direct labor hours: 495 hours How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent.) (a) $25.00

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Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 11E

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