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The Maxwell Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following

The Maxwell Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July:

Actual variable manufacturing overhead cost incurred: $34,740

Actual machine-hours worked: 1,400 hours

Variable overhead rate variance: $3,940 Unfavorable

Total variable overhead spending variance: $6,690 Unfavorable

The standard number of machine-hours allowed for July production is:

1,275 hours

1,375 hours

1,475 hours

2,045 hours

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