Question: Gallop, Inc. budgeted its variable overhead application rate as $0.25 per direct labor hour. Actual variable overhead cost for the period is $9,700. If the

Gallop, Inc. budgeted its variable overhead application rate as $0.25 per direct labor hour. Actual variable overhead cost for the period is $9,700. If the actual number of labor hours worked during the period are 38,500 and if there is a total unfavorable flexible variable overhead variance of $230, calculate the standard number of direct labor hours allowed for the output achieved by Gallop within this period.

a. 38,500

b. 37,880

c. 37,920

d. 39,720

Can you please indicate the process of finding the answer and any formulas used! (thank you!)

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