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Kata Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, Kata expected to incur
Kata Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, Kata expected to incur the following: 800 machine hours per month (80 connectors x 10 machine hours per connector) $5,000 in variable manufacturing overhead costs $8,525 in fixed manufacturing overhead costs During August, Kata actually used 900 machine hours to make 92 connectors and spent $5,400 in variable manufacturing costs and $8,000 in fixed manufacturing overhead costs. Kata's standard variable manufacturing overhead allocation rate is A. $5.56 per machine hour. B. $6.25 per machine hour. C. $16.91 per machine hour. D. $10.66 per machine hour
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