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:

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

How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent. )

Question

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:

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

How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent. )

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

How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent. )

Quizplus · Accepted Answer

A)Standard direct labor cost per hour = $13,500 / 620 hours = $21.77 per direct labor hour

Stafford Company Uses Standard Costs for Its Manufacturing Division