The Murray Company Makes and Sells a Single Product -What Was the Amount of Fixed Manufacturing Overhead Cost Applied

question 19

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 manufacturing overhead cost applied to work in process during May?

• A) $42,750.
• B) $61,725.
• C) $62,700.
• D) $64,125.

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Definitions:

Title Insurance

A form of insurance that protects against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.

Recorded Deed

A deed that has been officially entered into the public records, ensuring its validity and informing interested parties of the transfer of property rights.

Profit

An interest in land giving a person the right to enter land owned by another and remove natural resources (e.g., timber) from the land. Also called profit à prendre.

Easement

A right granted to use the real property of another for a specific purpose, such as right of way or access to utilities.