kata systems allocates manufacturing overhead based on machine hours. Each connector should require 5 machine hours. According to the static budget, Kata expected to incur the following:

400 machine hours per month (80 connectors x 5 machine hours per connector)

$ 8,000 in variable manufacturing overhead costs

$ 7,250 in fixed manufacturing overhead costs

During August, Kata actually used 2,000 machine hours to make 86 connectors and spent $ 5 ,900 in variable manufacturing costs and $ 7,800 in fixed manufacturing overhead costs. Kata's standard variable manufacturing overhead allocation rate is