Hogle Mfg Co The Combined Fixed and Variable Overhead Spending Variance Was:
A)

question 32

Multiple Choice

Hogle Mfg. Co. uses a standard costing system. The standard time to produce one unit is 4 hours, and normal production is 3,000 units monthly. Overhead costs were estimated to be $135,000. The standard variable overhead rate is $5 per machine hour. During April the following results were recorded: $$\begin{array} { l r } \text { Units produced } & 3,100 \\\text { Units sold } & 2,800 \\\text { Machine hours required } && 12,800 \\\text { Actual overhead costs } && \$ 136,000\end{array}$$ The combined fixed and variable overhead spending variance was:

• A) $1,000 U
• B) $2,000 F
• C) $7,000 U
• D) $3,000 F

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Definitions:

Payment

It is the transfer of money or goods from one party to another as a settlement of an obligation.

Adjusted

Modified or changed in order to correct or improve the financials, often used in the context of financial statements to present a particular item in a way that reflects its true economic impact.

Financial Statements

Formal records that outline the financial activities and position of a business, individual, or other entity.

Accounts

Records that summarize transactions related to a specific asset, liability, equity, revenue, or expense.