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

question 140

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 factory overhead 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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