Question
Access Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the staticbudget, Access expected to incur thefollowing:
Access Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the staticbudget, Access expected to incur thefollowing:
800 machine hours per month (80 connectors 10 machine hours per connector)
$5,000 in variable manufacturing overhead costs
$6,525 in fixed manufacturing overhead costs
DuringAugust, Access actually used 500 machine hours to make 86 connectors and spent $5,000 in variable manufacturing costs and $6,000 in fixed manufacturing overhead costs. Calculate the variable overhead efficiency variance for Access.
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