Elite Brands Company uses standard costs for their manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data:

Production volume………………………6,000 units

Estimated variable overhead costs………$13,500

Estimated direct labor hours…………….600 hours

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

Production volume………………………4,000 units

Actual variable overhead costs………….$15,000

Actual direct labor hours………………..480 hours

How much is the standard cost per direct labor hour for variable overhead?

A) $22.50 per direct labor hour

B) $33.75 per direct labor hour

C) $28.12 Per direct labor hour

D) $25.00 per direct labor hour

Answer rating: 100% (QA)

A 2250 per direct labor ... View the full answer