Calculate the variable overhead cost variance for FrontGrade.

a. $450 F

b. $600 U

c. $1,050 F

d. $1,650 F

FrontGrade Systems allocates manufacturing overhead 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 (100 connectors × 11 machine hours per connector) $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 overhead costs.