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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Definitions:

Impasto

A layer of thickly applied pigment.

Brushstrokes

The marks left by a painting brush on a surface, which can vary in technique, texture, and thickness, contributing to the stylistic and expressive qualities of a painting.

Rough

Characterized by an uneven or irregular surface; not smooth or refined in texture or sound.

Moses

A key figure in the Abrahamic religions, regarded as a prophet, lawgiver, and leader who delivered the Israelites from Egyptian slavery and received the Ten Commandments from God.