Hogle Mfg Co

Multiple Choice

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 variable overhead efficiency variance was:

A) $8,000 U
B) $4,000U
C) $2,000 U
D) $4,000 F