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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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: 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

Hogle Mfg Co