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The Maxit Corporation Has a Standard Costing System in Which \bullet

Question 211

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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: \bullet Actual variable manufacturing overhead cost incurred: $11,310
\bullet Actual machine-hours worked: 1,600 hours
\bullet Variable overhead rate variance: $1,710 U
\bullet Total variable overhead spending variance: $2,310 U
The standard number of machine-hours allowed for July production is closest to:


A) 1,600 hours
B) 1,700 hours
C) 1,300 hours
D) 1,500 hours

Correct Answer:

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