Hogle Manufacturing Uses a Standard Costing System

question 86

Multiple Choice

Hogle Manufacturing 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 combined fixed and variable overhead spending variance was

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

---

Definitions:

Functional Theory

A theory that attempts to explain why certain behaviors, structures, or institutions exist based on the functions they perform.

Strategic Positioning

The process of establishing how a brand, product, or company is perceived relative to its competitors in the marketplace to create competitive advantages.

Consumer Needs

Fundamental psychological or physical requirements that motivate consumer behavior and drive purchases.

Attitude

A settled way of thinking or feeling about something, often reflected in a person's behavior.