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 fixed overhead production volume variance was
A) $1,000 U
B) $2,500 F
C) $1,500 F
D) $5,000 U

Question

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 fixed overhead production volume variance was
A) $1,000 U 
B) $2,500 F 
C) $1,500 F 
D) $5,000 U

Quizplus · Accepted Answer

The Answer of 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 fixed overhead production volume variance was
A) $1,000 U 
B) $2,500 F 
C) $1,500 F 
D) $5,000 U

Hogle Manufacturing Uses a Standard Costing System