Overhead absorption variance calculation

Steps:

• Calculate the predetermined overhead absorption rate (OAR) = budgeted overheads / budgeted labour hours = $360,000 / 12,400 =$29 per hour (approximately).
• Calculate absorbed overheads = OAR × actual labour hours = $29 × 13,100 =$379,900.
• Calculate total variance = absorbed overheads - actual overheads = $379,900 -$340,000 = $39,900 overabsorbed (approximately$40,000).
• The provided choices do not match the calculated amount.

Not enough information to match the choices, as the standard formula yields approximately $40,000 overabsorbed, not$15,000 or $20,000.

Final answer: Not enough information.