Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) .Moeller Electric manufactures light fixtures.The following information pertains to the company's manufacturing overhead data.
-Assume that variable manufacturing overhead is allocated according to machine-hours.Aladdin Company expects to produce 400 cases of Product A using 400 machine-hours.Each machine hour is expected to take 10 KWH of electricity, which costs $6 per KWH.What is the maximum amount the company would be willing to pay for the new machine based solely on rate and efficiency variances if a new energy-efficient machine only used 8 KWH per machine-hour?

A) $120
B) $4,680
C) $4,920
D) $4,800
E) $4,120