Nora,Inc.manufactures components used by a major cell phone manufacturer.During the year,Nora produced 160,000 components and used 40,500 direct labor hours.Nora based its current year budget on a production level of 150,000 components each of which requires 15 minutes of direct labor time.Total budgeted variable overhead for the year was $131,250.Actual variable overhead for the year was $145,800.What is Nora's flexible budget variable overhead variance?
A) $14,550 favorable
B) $14,550 unfavorable
C) $4,050 unfavorable
D) $4,050 favorable

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The Answer of Nora,Inc.manufactures components used by a major cell phone manufacturer.During the year,Nora produced 160,000 components and used 40,500 direct labor hours.Nora based its current year budget on a production level of 150,000 components each of which requires 15 minutes of direct labor time.Total budgeted variable overhead for the year was $131,250.Actual variable overhead for the year was $145,800.What is Nora's flexible budget variable overhead variance?
A) $14,550 favorable
B) $14,550 unfavorable
C) $4,050 unfavorable
D) $4,050 favorable

Nora,IncManufactures Components Used by a Major Cell Phone Manufacturer