Stafford Company Uses Standard Costs for Its Manufacturing Division At the End of the Year,actual Data Were as Follows

question 86

Multiple Choice

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: $$\begin{array} { | l | l | } \hline \text { Production volume } & 5000 \text { units } \\\hline \text { Budgeted variable overhead costs } & \$ 13,500 \\\hline \text { Budgeted direct labor hours } & 620 \text { hours } \\\hline\end{array}$$ At the end of the year,actual data were as follows:
$$\begin{array} { | l | l | } \hline \text { Production volume } & 4100 \text { units } \\\hline \text { Actual variable overhead costs } & \$ 15,100 \\\hline \text { Actual direct labor hours } & 505 \text { hours } \\\hline\end{array}$$ How much is the standard cost per direct labor hour for variable overhead? (Round your answer to the nearest cent.)

• A)$21.77 per direct labor hour
• B)$16.46 per direct labor hour
• C)$26.73 per direct labor hour
• D)$24.35 per direct labor hour

---

Definitions:

Protection Sellers

Protection sellers in a financial context typically engage in credit derivatives markets, selling credit protection to hedge against the risk of default on underlying credit assets.

Protection Buyers

In derivatives trading, individuals or entities that purchase credit protection to hedge against potential losses from a credit event like default.

Convertible Securities

Bonds or preferred stocks that can be exchanged for (converted into) common stock, under specific terms, at the option of the holder. Unlike the exercise of warrants, conversion of a convertible security does not provide additional capital to the issuer.

Preferred Stocks

A type of stock that gives holders preference over common stockholders in terms of dividends and asset liquidation.