Leek Company Predicted That the Fixed Overhead Would Be $200,000

Multiple Choice

Leek Company predicted that the fixed overhead would be $200,000 in April 20X1. Production amounted to 60,000 actual and 50,000 budgeted decks of cards. Each deck takes approximately 0.20 machine hours to produce. The actual overhead costs per machine hour are $25. What is the production-volume overhead variance?

A) $40,000 unfavourable
B) $40,000 favourable
C) $150,000 unfavourable
D) $150,000 favourable
E) $0