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?
Definitions:
Weighted Average Method
An inventory costing method that averages out the cost of goods available for sale, weighting the cost based on quantities.
Equivalent Units
Equivalent units are a concept in cost accounting used to represent the amount of work done on incomplete units, expressed in terms of fully completed units.
Work in Process Inventory
Goods that are in the production process but are not yet completed.
Direct Materials
Materials in their unprocessed or natural state that can be directly linked and assigned to the end product during the production phase.
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