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Determine the standard number of machine-hours

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Question - The Maxwell 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: $34,740.

Actual machine-hours worked: 1,400 hours.

Variable overhead rate variance: $3,940 Unfavorable.

Total variable overhead spending variance: $6,690 Unfavorable.

Required - Determine the standard number of machine-hours allowed for July production?

a. 1,275 hours

b. 1,375 hours

c. 1,475 hours

d. 2,045 hours

Reference no: EM132530174

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