Norris Company Uses a Two-Way Analysis of Overhead Variances

question 37

Multiple Choice

Norris Company uses a two-way analysis of overhead variances. Selected data for the March production activity are as follows: Assuming that budgeted fixed overhead costs are equal to actual fixed costs, the controllable variance for March is

• A) $2,000
• B) $4,000 U.
• C) $4,000
• D) $6,000 F.

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Definitions:

Degrees Fahrenheit

A temperature scale where water's freezing point is at 32 degrees and its boiling point is at 212 degrees, given standard atmospheric conditions.

Temperature

A measure of the hotness or coldness of an object or substance with reference to some standard value.

Thermostat

A thermostat is a device used to control the temperature of a system so that the system's temperature is maintained near a desired set-point by regulating the flow of heat energy into or out of the system.

Degrees Fahrenheit

Degrees Fahrenheit is a unit of temperature where water freezes at 32 degrees and boils at 212 degrees under standard atmospheric conditions.