Levelor Company's Flexible Budget Shows $10,710 of Overhead at 75

question 159

Multiple Choice

Levelor Company's flexible budget shows $10,710 of overhead at 75% of capacity,which was the operating level achieved during May.However,the company applied overhead to production during May at a rate of $2.00 per direct labor hour based on a budgeted operating level of 6,120 direct labor hours (90% of capacity) .If overhead actually incurred was $11,183 during May,the controllable variance for the month was:

• A)$473 unfavorable.
• B)$473 favorable.
• C)$1,530 favorable.
• D)$1,530 unfavorable.
• E)$1,057 favorablE.

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Definitions:

Merger

The combination of two or more companies into a single entity, typically with the aim of achieving operational efficiencies or entering new markets.

Strategic Benefits

The long-term advantages gained from specific business decisions or activities, contributing to the achievement of company objectives.

Revenue Enhancement

Strategies or actions taken to increase the amount of income generated from business operations.

Merger

A strategic corporate action where two or more entities combine their operations to form a new organization or become part of an existing one.