Shane Industries Prepared a Fixed Budget of 60000 Direct Labor

question 157

Multiple Choice

Shane Industries prepared a fixed budget of 60000 direct labor hours with estimated overhead costs of $300000 for variable overhead and $90000 for fixed overhead. Shane then prepared a flexible budget at 57000 labor hours. How much is total overhead costs at this level of activity?

• A) $285000
• B) $375000
• C) $370500
• D) $390000

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Definitions:

Agricultural Revolution

A significant period of technological, social, and economic change, marked by the shift from hunter-gatherer societies to agriculture and settlement.

Terrestrial Plants

Plants that grow on land rather than in water or air, typically exhibiting adaptations like roots for water absorption and leaves for photosynthesis.

Transpiration

A mechanism where water is transported from the roots up to minuscule holes beneath the leaves in plants, converting into vapor before being discharged into the atmosphere.

Earth's Atmosphere

The layer of gases surrounding Earth, retained by Earth's gravity, which protects life by absorbing ultraviolet solar radiation, warming the surface through heat retention, and reducing temperature extremes between day and night.