Elite Brands Company uses standard costs for its manufacturing division

Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data:

Production volume 6,000 units
Budgeted variable overhead costs $13,500
Budgeted direct labor hours 610 hours

At the end of the year, actual data were as follows:

Production volume 4,100 units
Actual variable overhead costs $15,200
Actual direct labor hours 505 hours

How much is the standard cost per direct labor hour for variable overhead?
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 .A) Standard direct labor cost per hour = $13,500 / 610 hours = $22.13 per direct labor hour