Questions 8-10 rely on the following data. FrontGrade Systems allocates manufacturing over- head based on machine hours. Each connector should require 11 machine hours. According to the static budget, FrontGrade expected to incur the following:
1,100 machine hours per month (100 connectors x 11 machine hours per connector)
$5,500 in variable manufacturing overhead costs
$8,250 in fixed manufacturing overhead costs
During August, FrontGrade actually used 1,000 machine hours to make 110 connectors and spent $5,600 in variable manufacturing costs and $8,300 in fixed manufacturing over- head costs.
8. Front Grade's predetermined standard variable manufacturing overhead rate is a. $5.00 per machine hour b. $5.50 per machine hour c. $7.50 per machine hour. d. $12.50 per machine hour
9. Calculate the variable overhead spending variance for FrontGrade.
a. $450 F b. $600 U c. $1,050 F d. $1,650 F
10. Calculate the variable overhead efficiency variance for FrontGrade.
a. $450 F b. $600 U c. $1,050 F d. $1,650 F