Reference no: EM132612115

USC Company has the following information available:

Budgeted factory overhead costs $90,000

Actual factory overhead costs $80,000

Budgeted direct labor hours 20,000

Actual direct labor hours 21,000

Question 1: Assume direct labor hours are the cost driver of factory overhead costs. The budgeted factory overhead rate is ________.

Group of answer choices

Option 1: $3.57 per direct labor hour

Option 2: $3.81 per direct labor hour

Option 3: $4.00 per direct labor hour

Option 4: $4.50 per direct labor hour