Question
Systems allocates manufacturing overhead based on machine hours. Each connector should require 1010 machine hours. According to the static budget, SafeflowerSafeflower expected to incur the
Systems allocates manufacturing overhead based on machine hours. Each connector should require 1010 machine hours. According to the static budget, SafeflowerSafeflower expected to incur the following: nbsp 500 500 machine hours per month (5050 connectors x 1010 machine hours per connector) $ 7 comma 000$7,000 in variable manufacturing overhead costs $ 5 comma 550$5,550 in fixed manufacturing overhead costs During August, SafeflowerSafeflower actually used 900900 machine hours to make 125125 connectors and spent $ 5 comma 400$5,400 in variable manufacturing costs and $ 9 comma 300$9,300 in fixed manufacturing overhead costs. Calculate the variable overhead efficiency variance for SafeflowerSafeflower.
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