Stafford Company uses standard costs for its manufacturing division. Standards specify 0.2 direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginning of the year, the static budget for variable overhead costs included the following data: Production volume Budgeted variable overhead costs Budgeted direct labor hours 6,200 units $15,000 650 hours At the end of the year, actual data were as follows: Production volume Actual variable overhead costs Actual direct labor hours 4,000 units $15,200 490 hours How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent.) OA. $23.08 per direct labor hour OB. $30.61 per direct labor hour OC. $23.38 per direct labor hour OD. $18.75 per direct labor hour
Stafford Company uses standard costs for its manufacturing division. Standards specify 0.2 direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginning of the year, the static budget for variable overhead costs included the following data: Production volume Budgeted variable overhead costs Budgeted direct labor hours 6,200 units $15,000 650 hours At the end of the year, actual data were as follows: Production volume Actual variable overhead costs Actual direct labor hours 4,000 units $15,200 490 hours How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent.) OA. $23.08 per direct labor hour OB. $30.61 per direct labor hour OC. $23.38 per direct labor hour OD. $18.75 per direct labor hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Stafford Company uses standard costs for its manufacturing division. Standards specify 0.2 direct labor hours per unit of product. The allocation base for
variable overhead costs is direct labor hours. At the beginning of the year, the static budget for variable overhead costs included the following data:
Production volume
Budgeted variable overhead costs
Budgeted direct labor hours
6,200 units
$15,000
650 hours
At the end of the year, actual data were as follows:
Production volume
Actual variable overhead costs
Actual direct labor hours
4,000 units
$15,200
490 hours
How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent.)
OA. $23.08 per direct labor hour
OB. $30.61 per direct labor hour
OC. $23.38 per direct labor hour
OD. $18.75 per direct labor hour
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