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

Kata Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, Kata expected to incur the following:800 machine hours per month (80 connectors x 10 machine hours per connector)$5,000 in variable manufacturing overhead costs$8,115 in fixed manufacturing overhead costsDuring August, Kata actually used 500 machine hours to make 90 connectors and spent $5,000 in variable manufacturing costs and $8,800 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for Kata.

Answer A $4,375 F

Answer B $1,875 U

Answer C $625 F

Answer D $2,500 F

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