At the Denominator Activity Level, Norland Company's Total Overhead Budget

question 67

Multiple Choice

At the denominator activity level, Norland Company's total overhead budget for 25,000 units of production shows variable overhead costs of $36,000 and fixed overhead costs of $32,000. During the most recent period, the company incurred total overhead costs of $61,400 to manufacture 20,000 units.

The total overhead flexible-budget variance for Norland Co. for the most recent period, to the nearest whole dollar, was:

• A) $200 favorable.
• B) $600 unfavorable.
• C) $6,000 unfavorable.
• D) $6,600 favorable.
• E) $7,000 unfavorable.

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Definitions:

War Effort

The collective activities and endeavors of a nation or group to support and advance its cause during a time of war.

D-Day

Refers to June 6, 1944, when Allied forces launched a massive beach assault against Nazi Germany's fortifications on the Normandy coast during World War II.

Military Operation

A coordinated military action undertaken by armed forces to achieve a specific objective, often part of a larger campaign or conflict.

Eastern Front

A term commonly referring to the theater of military operations in Eastern Europe during World War I and World War II, between the Central Powers/Berlin-Rome-Tokyo Axis and the Allies/Soviet Union.