How much is the standard cost per direct labor hour for variable overhead?? Elite Brands Company uses standard costs for its manufacturingdivision. Standards specify 0.1 direct labor hours per unit ofproduct. At the beginning of the year, the static budget for variableoverhead costs included the following data:Production volume8,400 units1760 hoursBudgeted variable overhead costs $17,000Budgeted direct labor hoursAt the end of the year, actual data were as follows:Production volumeActual variable overhead costsActual direct labor hours6,300 units$17,8001690 hoursHow much is the standard cost per direct labor hour for variableoverhead?

Explanation of Standard Costs: These are predetermined costs that a company expects to incur under…

Answered: Elite Brands Company uses standard…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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How much is the standard cost per direct labor hour for variable overhead??

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
8,400 units
1760 hours
Budgeted variable overhead costs $17,000
Budgeted direct labor hours
At the end of the year, actual data were as follows:
Production volume
Actual variable overhead costs
Actual direct labor hours
6,300 units
$17,800
1690 hours
How much is the standard cost per direct labor hour for variable
overhead?

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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