Levelor Company's Flexible Budget Shows $10,710 of Overhead at 75

question 102

Multiple Choice

Levelor Company's flexible budget shows $10,710 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.00 per direct labor hour based on a budgeted operating level of 6,120 direct labor hours (90% of capacity) . If overhead actually incurred was $11,183 during May, the controllable variance for the month was:

• A) $473 unfavorable.
• B) $1,530 unfavorable.
• C) $1,057 favorable.
• D) $1,530 favorable.
• E) $473 favorable.

---

Definitions:

Consumer Recognition

indicates the extent to which a brand or product is identified by potential customers, often seen as a measure of brand strength or market presence.

Brand Purpose

The reason a brand exists beyond making a profit, often reflecting its values and how it intends to positively impact customers and society.

Easy Recognition

The ability of consumers to quickly identify a brand or product by its attributes, such as logo or packaging, with minimal effort.

Brand Name

The distinctive title that identifies a product or a company to consumers and differentiates it from competitors.