Actual/Normal/Standard Costing

Fast Finance is a drive-in financial consulting business, where customers park in the parking lot and employees come by on roller-skates to give them financial advice.

For the month of January, Fast Finance estimates that they will receive 900 customers. The following table summarized their budgeted costs for January:

	Standards
Direct Labor Cost	50 $ / hr
Total Variable Overhead Cost	$11,250
Total Fixed Overhead Cost	$19,800
Number of Customers	900
Total Direct Labor Hours	1,125 hrs

At the end of January, Fast Finance had incurred the following actual costs:

	Actuals
Direct Labor Cost	$48,000
Total Variable Overhead Cost	$9,600
Total Fixed Overhead Cost	$20,000
Number of Customers	960
Total Direct Labor Hours	960 hrs

Fast Finance uses a full-absorption, normal costing system, and allocates their Variable and Fixed overhead on the basis of number of customers. Fast Finance charges their customers a flat rate per session, and as a result, considers the 'units' for their costing system to be customers.

Suppose that Fast Finance is curious about their cost driver for Variable Overhead. What would be the Standard Price (SP) for Variable Overhead if they instead allocated Variable Overhead on the basis of Direct Labor Hours?