Question: Radiant Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, Radiant expected to incur
Radiant Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, Radiant expected to incur the following:
nbsp 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 costs
During August, Radiant actually used nbsp 400 machine hours to make 130 connectors and spent $5,500 in variable manufacturing costs and $6,000 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for tRadiant.
A. $2,625 F
B. #3,000 U
C. $5,625 F
D. $8,625 F
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