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Calculate the variable overhead cost variance for tradiant

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Reference no: EM131596601

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

nbsp 800 machine hours per month (80 connectors x 10 machine hours per connector)

$5,000 in variable manufacturing overhead costs

$8,115 in fixed manufacturing overhead costs

During August, Radiant actually used nbsp 400 machine hours to make 130 connectors and spent $5,500 in variable manufacturing costs and $6,000 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for tRadiant.

A. $2,625 F

B. #3,000 U

C. $5,625 F

D. $8,625 F

Reference no: EM131596601

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