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The Murray Company Makes and Sells a Single Product -What Was the Amount of Fixed Overhead Contained in the Company

question 176

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The Murray Company makes and sells a single product. The company recorded the following activity and cost data for May:
 Number of Units Completed 45,000 units  Standard Direct Labour Hours Allowed per Unit of Product 1.5 DLHS  Budgeted Direct Labour Hours (denominator activity)  72,000 DLHS  Actual Fixed Overhead Costs Incurred $66,000 Volume Variance $4,4275 unfavourable  The fixed portion of the predetermined overhead rate is $0.95 per direct labour hour. \begin{array}{l}\begin{array} { | l | r | } \hline \text { Number of Units Completed } & 45,000 \text { units } \\\hline \text { Standard Direct Labour Hours Allowed per Unit of Product } & 1.5 \text { DLHS } \\\hline \text { Budgeted Direct Labour Hours (denominator activity) } & 72,000 \text { DLHS } \\\hline \text { Actual Fixed Overhead Costs Incurred } & \$ 66,000 \\\hline \text { Volume Variance } & \$ 4,4275 \text { unfavourable } \\\hline\end{array}\\\text { The fixed portion of the predetermined overhead rate is } \$ 0.95 \text { per direct labour hour. }\end{array}



-What was the amount of fixed overhead contained in the company's overhead flexible budget for May?

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