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) 1,600 hours
B) 1,700 hours
C) 1,300 hours
D) 1,500 hours
Correct Answer:
Verified
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