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
$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.