Hogle Mfg Co

question 90

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: Units produced 3,100
Units sold 2,800
Machine hours required 12,800
Actual overhead costs $136,000
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:

Labor

The body of work performed by human beings, often in exchange for payment, significant in economics for its role in production.

Materials

Substances or components used in the production of goods or in the performance of services.

Square Yards

A unit of area measurement equal to a square measuring one yard on each side, used in both the U.S. customary and British imperial systems.

Herb Garden

A dedicated garden space for growing herbs, often used for culinary, medicinal, or aromatic purposes.