Stafford Company uses standard costs for its manufacturing division. Standards specify 0.1 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:



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

A) $22.13 per direct labor hour

B) $32.93 per direct labor hour

C) $26.73 per direct labor hour

D) $24.92 per direct labor hour


A) $22.13 per direct labor hour
Explanation: Standard direct labor cost per hour = $13,500 / 610 hours = $22.13 per direct labor hour

Business

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