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

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Definitions:

Histogram

A graphical representation of the distribution of numerical data, where the data is split into bins or intervals, and the frequency of data within each bin is depicted by the height of a bar.

Bar Chart

A graphical representation of data using bars of different heights or lengths proportional to the values they represent.

Pie Chart

A circular graph divided into slices to illustrate numerical proportions in a dataset, where the arc length of each slice is proportional to the quantity it represents.

Outliers

Observations that are significantly different from, and lie outside the range of, most of the other data points.