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:

Pounds

A unit of weight commonly used in the British imperial and United States customary systems, equal to 16 ounces.

Optimal Consumption

The combination of goods and services that maximizes an individual's utility given their budget constraints.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, that is, the consumer has no preference for one combination over another.

Price Decrease

A reduction in the price of a good or service, which can lead to an increase in quantity demanded by consumers according to the law of demand.