At the Denominator Activity Level,Norland Company's Total Overhead Budget for 25,000

question 68

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 flexible-budget variance is:

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

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Definitions:

Data Points

Individual items of data that represent a specific measurement or observation.

SUM

The result of adding two or more numbers together to get a total amount.

Information Dependence

The extent to which individuals or organizations rely on others for obtaining information necessary to make decisions or perform tasks.

Effect Dependence

The extent to which outcomes in interpersonal or organizational settings depend on the actions of others.