Question
Sapon Systems allocates manufacturing overhead based on machine hours. Each connector should require 13 machine hours. According to the static budget, Sapon expected to incur
Sapon Systems allocates manufacturing overhead based on machine hours. Each connector should require 13 machine hours. According to the static budget, Sapon expected to incur the following:1,300 machine hours per month (100 connectors x 13 machine hours per connector)$ 6,500 in variable manufacturing overhead costs $ 7,250 in fixed Manufacturing overhead costs
During August, Sapon actually used 400 machine hours to make 92 connectors and spent $ 5,500 in variable manufacturing costs and $ 6,000
in fixed manufacturing overhead costs.
Calculate the variable overhead cost variance for Sapon?
A.$ 3,500U
B. $ 3,980F
C. $ 480F
D.$ 7,480F
PLEASE SHOW WORK!
.
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