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: $$\begin{array} { l r }
\text { Units produced } & 3,100 \
\text { Units sold } & 2,800 \
\text { Machine hours required } && 12,800 \
\text { Actual overhead costs } && \$ 136,000
\end{array}$$ The variable overhead efficiency variance was:
A) $8,000 U
B) $4,000U
C) $2,000 U
D) $4,000 F

Question

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: $$\begin{array} { l r } 
\text { Units produced } & 3,100 \
\text { Units sold } & 2,800 \
\text { Machine hours required } && 12,800 \
\text { Actual overhead costs } && \$ 136,000
\end{array}$$ The variable overhead efficiency variance was:
A) $8,000 U
B) $4,000U
C) $2,000 U
D) $4,000 F

Quizplus · Accepted Answer

The Answer of 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: $$\begin{array} { l r } 
\text { Units produced } & 3,100 \
\text { Units sold } & 2,800 \
\text { Machine hours required } && 12,800 \
\text { Actual overhead costs } && \$ 136,000
\end{array}$$ The variable overhead efficiency variance was:
A) $8,000 U
B) $4,000U
C) $2,000 U
D) $4,000 F

Hogle Mfg Co The Variable Overhead Efficiency Variance Was: A) $8,000 U B)

Hogle Mfg Co The Variable Overhead Efficiency Variance Was:
A) $8,000 U
B)