Bozo Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year:
Calculate the total standard overhead rate per direct labour hour (variable and fixed).
A) $0.125
B) $4.06
C) $8.00
D) $8.20

Question

Bozo Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year: 
Calculate the total standard overhead rate per direct labour hour (variable and fixed).
A) $0.125 
B) $4.06 
C) $8.00 
D) $8.20

Quizplus · Accepted Answer

The Answer of Bozo Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year: 
Calculate the total standard overhead rate per direct labour hour (variable and fixed).
A) $0.125 
B) $4.06 
C) $8.00 
D) $8.20

Bozo Pty Ltd Uses a Standard Costing System for Product