Hogle Manufacturing Uses a Standard Costing System

Multiple Choice

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 combined fixed and variable overhead spending variance was

A) $1,000 U
B) $2,000 F
C) $7,000 U
D) $3,000 F