USC Company Has the Following Information Available Assume Direct Labor Hours Are the Cost Driver of Factory

question 80

Multiple Choice

USC Company has the following information available:
$\begin{array}{ll}\text { Budgeted factory overhead costs } & \$ 90,000 \\\text { Actual factory overhead costs } & \$ 80,000 \\\text { Budgeted direct labor hours } & 20,000 \\\text { Actual direct labor hours } & 21,000\end{array}$
Assume direct labor hours are the cost driver of factory overhead costs.The budgeted factory overhead rate is ________.

• A) $3.57 per direct labor hour
• B) $3.81 per direct labor hour
• C) $4.00 per direct labor hour
• D) $4.50 per direct labor hour

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