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

question 176

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

• A) $64,125.
• B) $67,500.
• C) $68,400.
• D) $70,275.

---

Definitions:

Job Security

The likelihood or assurance an individual has that they will continue to be employed without risk of becoming unemployed.

Inplacement

A process within organizations aimed at helping existing employees transition into new roles or positions.

Counselling

The provision of professional guidance to resolve personal or psychological problems.

Job Search Assistance

Services or support provided to individuals seeking employment, including resume writing, interview coaching, and job placement counseling.