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:

Location Selection

The process of choosing an optimal place for business operations, considering factors such as cost, accessibility, and market demand.

Goods

Physical items that are produced, bought, or sold to satisfy wants or needs of consumers.

Services

Intangible products provided to consumers, such as healthcare, education, and financial advice, that do not result in ownership of any physical goods.

Supply Chain

The network of suppliers, manufacturers, distributors, and retailers that work together to produce and deliver products to the end consumer.