Safeflower Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, Safeflower Systems expected t incur the following: View the static budget information. During August, Safeflower Systems actually used 400 machine hours to make 92 connectors and spent $5,500 in variable manufacturing costs and $7,800 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for Safeflower Systems. OA. $6,850 F OB. $5,850 F O C. $1,000 U OD. $4,850 F Static Budget 400 machine hours per month (40 connectors x 10 machine hours per connector) $4,500 in variable manufacturing overhead costs $6,210 in fixed manufacturing overhead costs Print Done - X

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Safeflower Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, Safeflower Systems expected to
incur the following:
View the static budget information.
During August, Safeflower Systems actually used 400 machine hours to make 92 connectors and spent $5,500 in variable manufacturing costs and $7,800 in fixed manufacturing overhead costs.
Calculate the variable overhead cost variance for Safeflower Systems.
OA. $6,850 F
O B. $5,850 F
OC. $1,000 U
OD. $4,850 F
Static Budget
400 machine hours per month (40 connectors x 10 machine hours per connector)
$4,500 in variable manufacturing overhead costs
$6,210 in fixed manufacturing overhead costs
Print
Done
-
Transcribed Image Text:Safeflower Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, Safeflower Systems expected to incur the following: View the static budget information. During August, Safeflower Systems actually used 400 machine hours to make 92 connectors and spent $5,500 in variable manufacturing costs and $7,800 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for Safeflower Systems. OA. $6,850 F O B. $5,850 F OC. $1,000 U OD. $4,850 F Static Budget 400 machine hours per month (40 connectors x 10 machine hours per connector) $4,500 in variable manufacturing overhead costs $6,210 in fixed manufacturing overhead costs Print Done -
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