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: 1,000...




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:


















1,000 machine hours per month (100 connectors × 10 machine hours per connector)


$8,500 in variable manufacturing overhead costs


$9,450 in fixed manufacturing overhead costs





During​ August, Kata actually used 800 machine hours to make 130 connectors and spent $5,200 in variable manufacturing costs and
$7,800 in fixed manufacturing overhead costs. Kata's standard variable manufacturing overhead allocation rate is




A.






$17.95

per machine hour.





B.




$9.45

per machine hour.





C.




$10.63

per machine hour.





D.




$8.50

per machine hour.





Jun 10, 2022
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