Reference no: EM132971236

Question - Sapon Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static? budget, Sapon expected to incur the? following:

Data Table

400 machine hours per month (40 connectors × 10 machine hours per connector)

$4,500 in variable manufacturing overhead costs

$9,450 in fixed manufacturing overhead costs

During? August, Sapon actually used  400 machine hours to make 85 connectors and spent $5,500 in variable manufacturing costs and $6,400 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for Sapon.