Is the oil brand new? I've seen where old oil that has a good deal of contamination with fuel or moisture dilution in it will evaporate after a good hot run showing a lower dipstick reading. Before you judge this engine too critically, I would change the oil and filter, using low ash SAE30 if not operated in the extreme cold, or 10W30 if used in really cold conditions. If it still uses oil after the change, then further investigation is warranted. None of my Kohler Magnum twins leak or use any appreciable amount of oil, even after thousands of hours of use.
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582, 682, 782, 782D, 1282, 1050, 1210 x 2, 1711, and 1811
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