Question
Sapon Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the staticbudget, Sapon expected to incur thefollowing:
Sapon Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the staticbudget, Sapon expected to incur thefollowing:
Data Table
400 machine hours per month (40 connectors 10 machine hours per connector)
$4,500 in variable manufacturing overhead costs
$9,450 in fixed manufacturing overhead costs
DuringAugust, Sapon actually used 400 machine hours to make 85 connectors and spent $5,500 in variable manufacturing costs and $6,400 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for Sapon.
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