A Department Has Budgeted Monthly Fixed Manufacturing Overhead Cost of $40,000

question 15

Multiple Choice

A department has budgeted monthly fixed manufacturing overhead cost of $40,000 plus $5 per direct labour hour.The flexible budget report reflects $120,000 for total budgeted manufacturing cost for the month.What is the budgeted level of activity to be achieved during the month?

• A)32,000 direct labour hours
• B)24,000 direct labour hours
• C)16,000 direct labour hours
• D)cannot be determined

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Definitions:

Safety Needs

The second level in Maslow's hierarchy of needs, encompassing the human desire for security, safety, and physical well-being.

Managerial Ethics

Principles and standards that guide behavior in the world of business, including fairness, honesty, and integrity.

Corporate Social Responsibility

The concept that businesses should be accountable for their impact on society and the environment, going beyond profit-making to ethical, social, and ecological concerns.

Mary Parker Follett

An early 20th-century social worker and management consultant who emphasized the importance of human relations and collaborative management in organizations.