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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 Budgeted variable overhead costs $15,000 Budgeted direct labor hours 6,500 units 600 hours At the end of the year, actual data were as follows: Production volume 4,000 units Actual variable overhead costs $15,400 Actual direct labor hours 495 hours How much is the standard cost per direct labor hour for variable overhead? a. $25.00 per direct labor hour b. $37.50 per direct labor hour c. $30.30 per direct labor hour d. $25.67 per direct labor hour

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 Budgeted variable overhead costs $15,000 Budgeted direct labor hours 6,500 units 600 hours At the end of the year, actual data were as follows: Production volume 4,000 units Actual variable overhead costs $15,400 Actual direct labor hours 495 hours How much is the standard cost per direct labor hour for variable overhead? a. $25.00 per direct labor hour b. $37.50 per direct labor hour c. $30.30 per direct labor hour d. $25.67 per direct labor hour

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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Accounting Elite brands company uses standard costs for its manufacturing division..

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 Budgeted variable overhead costs $15,000 Budgeted direct labor hours 6,500 units 600 hours At the end of the year, actual data were as follows: Production volume 4,000 units Actual variable overhead costs $15,400 Actual direct labor hours 495 hours How much is the standard cost per direct labor hour for variable overhead? a. $25.00 per direct labor hour b. $37.50 per direct labor hour c. $30.30 per direct labor hour d. $25.67 per direct labor hour
Transcribed Image Text: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 Budgeted variable overhead costs $15,000 Budgeted direct labor hours 6,500 units 600 hours At the end of the year, actual data were as follows: Production volume 4,000 units Actual variable overhead costs $15,400 Actual direct labor hours 495 hours How much is the standard cost per direct labor hour for variable overhead? a. $25.00 per direct labor hour b. $37.50 per direct labor hour c. $30.30 per direct labor hour d. $25.67 per direct labor hour
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