Jensen Manufactures Speakers for Car Stereos and Applies Fixed Overhead

Multiple Choice

Jensen manufactures speakers for car stereos and applies fixed overhead based on direct labor hours.Jensen's fixed overhead spending variance for the year was $12,500 favorable.For the current year, the company had budgeted to produce 124,000 speakers.Jensen's actual fixed overhead for the year was $378,100.Jensen produced 122,000 speakers and used 183,000 direct labor hours, which was the standard hours allowed for the number of speakers produced.What was Jensen's budgeted fixed overhead rate per direct labor hour for the year (if necessary, round your answer to the nearest cent) ?

A) $2.00/DLH
B) $2.10/DLH
C) $2.07/DLH
D) $2.03/DLH