A Department Has Budgeted Monthly Manufacturing Overhead Cost of $540000

question 44

Multiple Choice

A department has budgeted monthly manufacturing overhead cost of $540000 plus $3 per direct labor hour. If a flexible budget report reflects $1044000 for total budgeted manufacturing cost for the month the actual level of activity achieved during the month was

• A) 528000 direct labor hours.
• B) 168000 direct labor hours.
• C) 348000 direct labor hours.
• D) Cannot be determined from the information provided.

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Definitions:

Reaction

An activity in which reactants are processed and turned into different materials, which are identified as products.

Organic Product

A substance that originates from living entities or is produced through organic processes.

Reaction

A process in which substances, the reactants, transform into different substances, the products, through a chemical change.

Reaction

A process in which substances, the reactants, undergo chemical changes to form new substances, known as products.