The Upton Company Uses a Standard Costing System in Which

Multiple Choice

The Upton Company uses a standard costing system in which variable overhead is assigned to production on the basis of standard direct labor-hours. Data for the month of February include the following:
Variable overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labor-hours worked: 6,840
-The standard variable overhead rate per direct labor-hour is:

A) $6.91
B) $6.95
C) $7.00
D) $7.12