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

1000 machine hours per month (100 connectors *10 machine hours per connector)

$8,500 in variable manufacturing overhead costs

$8115 in fixed manufacturing overhead costs

During August, Absolute actually used 600 machine hours to make 80 connectors and spent $5700 in variable manufacturing costs and $9600 in fixed manufacturing overhead costs. Calculate the variable overhead spending variance for Absolute.

a. $600 U

b. $1,100 F

c. $1,700 F

d. $2,300 F

Answer rating: 100% (QA)

Solution Correct option is a 600 U Standa... View the full answer