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Business, 26.11.2019 22:31 hosfordkenya4

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

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Answers: 2

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