Stafford Company uses standard costs for its manufacturing division.Standards specify 0.1 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:

\begin{array} { | l | l | } \hline \text { Production volume } & 5000 \text { units } \\\hline \text { Budgeted variable overhead costs } & \$ 13,500 \\\hline \text { Budgeted direct labor hours } & 610 \text { hours } \\\hline\end{array}

At the end of the year,actual data were as follows:

\begin{array} { | l | l | } \hline \text { Production volume } & 4100 \text { units } \\\hline \text { Actual variable overhead costs } & \$ 15,200 \\\hline \text { Actual direct labor hours } & 505 \text { hours } \\\hline\end{array}

How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent.)
A) $22.13 per direct labor hour
B) $32.93 per direct labor hour
C) $26.73 per direct labor hour
D) $24.92 per direct labor hour

Accurate Tax Returns Budgets Two Direct Labor Hours for Every

Multiple Choice

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