Use the Following Information for the Next 4 Questions

question 123

Multiple Choice

Use the following information for the next 4 questions.
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:
-The variable overhead efficiency variance was

• A) $8,000 U
• B) $4,000U
• C) $2,000 U
• D) $4,000 F

Recognize the importance of reducing setup times and costs to achieve small lot production.

Identify the types of waste in a production system and understand the concept of value-added activities.

Understand supplier relationships and strategies within JIT systems.

Comprehend the role of inventory and setup times in achieving lower average inventory.

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Definitions:

Yield Rate

The rate of return on an investment over a specified period, often expressed as a percentage.

Cost Schedule

A list or plan that outlines the anticipated costs involved in a project or business operation over time.

Ceramic Plates

Durable dishes made from clay that are hardened by heat, commonly used for eating, serving, and decoration purposes.

Flawed Units

items that have defects or do not meet the quality standards set by the manufacturer or industry, rendering them less valuable or unsellable.