Question
Keenes Systems allocates manufacturing overhead based on machine hours. Each connector should require 8 machine hours. According to the static? budget, Keenes expected to incur
Keenes Systems allocates manufacturing overhead based on machine hours. Each connector should require 8 machine hours. According to the static? budget, Keenes expected to incur the? following:
480 machine hours per month (60 connectors x 8 machine hours per? connector)
$6,000 in variable manufacturing overhead costs $9,450 in fixed manufacturing overhead costs
During? August,
Keenes actually used 500 machine hours to make 86connectors and spent $5,300 in variable manufacturing costs and $9,100 in fixed manufacturing overhead costs. Calculate the variable overhead efficiency variance for Keenes.
A. $950 U
B. $1,400 FF
C. $2,350 FF
D. $3,300 F
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