Question
Keenes Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, Keenes expected to incur
Keenes Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, Keenes expected to incur the following: 600 machine hours per month (60 connectors x 10 machine hours per connector) $ 7,500 in variable manufacturing overhead costs $ 5,325
in fixed manufacturing overhead costs
During August, Keenes actually used 800 machine hours to make 95 connectors and spent $ 5,200 in variable manufacturing costs and $ 8,800 in fixed manufacturing overhead costs.
Calculate the variable overhead efficiency variance for Keenes?
A. $ 4,800U
B.$ 1,875F
C.$ 2,925F
D.$ 6,67F
PLEASE SHOW WORK!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started