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36. Hogle Mfg. Co. uses a standard costing system. The standard time to produce one unit is 4 hours, and normal 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 Units sold Machine hours required Actual overhead costs 3,100 2,800 12,800 $136,000 The combined fixed and variable overhead spending variance was. a) $1,000 uU b) $2.000 F c) $7,000 U d) $3,000 F Answer: d Difficulty: Easy Learning Objective: Calculate and journalize variable and fixed overhead variances. CPA: Management Accounting 37. 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 Units sold Machine hours required Actual overhead costs 3,100 2,800 12,800 $136,0004 The variable overhead efficiency variance was: a) $8,000 U b) $4,000U c) $2,000 U d) $4,000F Answer: c Difficulty: Easy Learning Objective: Calculate and journalize variable and fixed overhead variances. CPA: Management Accounting 38. 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 Units sold Machine hours required Actual overhead costs 3,100 2,800 12,800 $136,000 The fixed overhead production volume variance was: a) $1,000U b) $2,500 F c) $1,500F d) $5,000 U Answer: b Difficulty: Easy Learning Objective: Calculate and journalize variable and fixed overhead variances. CPA: Management Accounting 39. 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 Units sold Machine hours required Actual overhead costs 3,100 2,800 12,800 $136,000 The total overhead allocated was a) $135,000 b) $139,500 c) $141,500 d) $137,000 Answer: b Difficulty: Easy Learning Objective: Calculate and journalize variable and fixed overhead variances. CPA: Management Accounting

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