Compute standard overhead cost per unit. (Obj. 1). D.C. Corporation uses direct labor hours as a basis for charging standard overhead to Work in Process. The standard overhead rate for 19X9 is based on a budget of 40,000 hours to produce 80,000 units. The budget at that level called for fixed overhead of $600,000 and variable overhead of $800,000. During the month of Januairy, 7,000 units were produced. Fixed overhead was $50,000, and variable overhead was

$7,220.

a. Determine the standard overhead cost per direct labor hour.

b. Compute the standard overhead cost per unit of product.

LO.1