The Maxwell Corporation has a standard costing system in which variable manufact
ID: 2463059 • Letter: T
Question
The Maxwell Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July:
• Actual variable manufacturing overhead cost incurred: $22,620
• Actual machine-hours worked: 1,600 hours
• Variable overhead rate variance: $3,420 Unfavorable
• Total variable overhead spending variance: $4,620 Unfavorable
The standard number of machine-hours allowed for July production is:
A) 1500 hours
B)1600 hours
C) 1700 hours
D) 2270 hours
Explanation / Answer
Answer A 1500 Hours