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: Production volume Budgeted variable overhead costs Budgeted direct labor hours 6,200 units $15,000 650 hours At the end of the year, actual data were as follows: Production volume Actual variable overhead costs Actual direct labor hours 4,000 units $15,200 490 hours How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent.) OA. $23.08 per direct labor hour OB. $30.61 per direct labor hour OC. $23.38 per direct labor hour OD. $18.75 per direct labor hour
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: Production volume Budgeted variable overhead costs Budgeted direct labor hours 6,200 units $15,000 650 hours At the end of the year, actual data were as follows: Production volume Actual variable overhead costs Actual direct labor hours 4,000 units $15,200 490 hours How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent.) OA. $23.08 per direct labor hour OB. $30.61 per direct labor hour OC. $23.38 per direct labor hour OD. $18.75 per direct labor hour
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 31P: Misterio Company uses a standard costing system. During the past quarter, the following variances...
Related questions
Question
please answer in text form with must and compulsory introduction ,explanation , computation for each steps and parts
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub