Question: Radiant Systems allocates manufacturing overhead based on machine hours. Each connector should require 8 machine hours. According to the static? budget, Radiant expected to incur
Radiant Systems allocates manufacturing overhead based on machine hours. Each connector should require 8 machine hours. According to the static? budget, Radiant expected to incur the? following:
| 400 machine hours per month (50 connectors x 8 machine hours per? connector) | |
| $4,000 in variable manufacturing overhead costs | |
| $7,250 in fixed manufacturing overhead costs |
During? August, Radiant actually used 500 machine hours to make 86 connectors and spent $5,000 in variable manufacturing costs and $9,600 in fixed manufacturing overhead costs. Radiant's standard variable manufacturing overhead allocation rate is
A. $8.00 per machine hour.
B. $28.13 per machine hour.
C. $18.13 per machine hour.
D. $10.00 per machine hour.
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