Front grades predetermined standard variable manufacturing

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Reference no: EM13591470

Rely on the following data. FrontGrade Systems allocates manufacturing over- head based on machine hours. Each connector should require 11 machine hours. According to the static budget, FrontGrade expected to incur the following:

1,100 machine hours per month

$5,500 in variable manufacturing overhead costs

$8,250 in fixed manufacturing overhead costs

During August, FrontGrade actually used 1,000 machine hours to make 110 connectors and spent $5,600 in variable manufacturing costs and $8,300 in fixed manufacturing over- head costs.

Front Grade's predetermined standard variable manufacturing overhead rate is a. $5.00 per machine hour b. $5.50 per machine hour c. $7.50 per machine hour. d. $12.50 per machine hour.Calculate the variable overhead spending variance for FrontGrade.

Reference no: EM13591470

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