Hogle Manufacturing Uses a Standard Costing System

question 32

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 total overhead allocated was

• A) $135,000
• B) $139,500
• C) $141,500
• D) $137,000

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Definitions:

Thirty Year Mortgage

A long-term home loan typically repaid over 30 years through fixed monthly payments, often with a fixed interest rate.

Monthly Payment

The amount paid each month on a loan, mortgage, or other debt obligation.

APR

Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, accounting for fees and compound interest.

APR Discount Rate

The annual percentage rate that represents the actual yearly cost of funds over the term of a loan, including any fees or additional costs associated with the transaction.