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Sapon Systems allocates manufacturing overhead based on machine hours. Each connector should require 5 machine hours. According to the static budget, Sapon expected to incur
Sapon Systems allocates manufacturing overhead based on machine hours. Each connector should require 5 machine hours. According to the static budget, Sapon expected to incur the following: 750 machine hours per month (150 connectors x 5 machine hours per connector) $9,000 in variable manufacturing overhead costs $6,525 in fixed manufacturing overhead costs During August, Sapon actually used 1,000 machine hours to make 95 connectors and spent $5,800 in variable manufacturing costs and $8,800 in fixed manufacturing overhead costs. Sapon's standard variable manufacturing overhead allocation rate is A. $12.00 per machine hour. B. $9.00 per machine hour. OC. $20.70 per machine hour. D. $8.70 per machine hour.
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