The Maxit 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: $11,310 Actual machine hours worked: 1,600 hours Variable overhead rate variance: $1,710 U Total variable overhead spending variance: $2,310 U The standard number of machine-hours allowed for July production is closest to: a. 1,500 hours b. 1,600 hours c. 1,700 hours d. 1,300 hours

The Maxit 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: $11,310 Actual machine hours worked: 1,600 hours Variable overhead rate variance: $1,710 U Total variable overhead spending variance: $2,310 U The standard number of machine-hours allowed for July production is closest to: a. 1,500 hours b. 1,600 hours c. 1,700 hours d. 1,300 hours

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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