The Murray Company Makes and Sells a Single Product -What Was the Fixed Overhead Budget Variance for May?
A)

question 25

Multiple Choice

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



-What was the fixed overhead budget variance for May?

• A) $2,400 favourable.
• B) $2,400 unfavourable.
• C) $6,000 favourable.
• D) $6,000 unfavourable.

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Definitions:

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A psychological state characterized by lowered self-consciousness, decreased sense of personal responsibility, and increased behavior in line with group norms, often seen in large groups or anonymous contexts.

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A secretive and often violent organization in the United States, historically advocating for white supremacy, white nationalism, and anti-immigration sentiments.

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A range of behaviors intended to harm or assert dominance over others, which can be physical or verbal.

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A psychological state where an individual loses their sense of self-awareness and feels less accountable for their actions, often occurring in group settings.