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:

Graves' Disease

An autoimmune disorder that leads to overactivity of the thyroid gland, causing hyperthyroidism.

Pancreas

An organ in the abdomen involved in blood sugar regulation and digestive enzyme production.

Behind Stomach

Referring to the anatomical area located posterior to the stomach in the human body.

Pituitary

A small pea-sized gland located at the base of the brain, critical for regulating growth and the function of other glands in the endocrine system.