Reference no: EM131569311

Question - 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: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 costsDuring August, Kata actually used 500 machine hours to make 90 connectors and spent $5,000 in variable manufacturing costs and $8,800 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for Kata.