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:

Public Sector Unions

Labor organizations that represent employees working in government agencies and services, advocating for their members' rights, benefits, and conditions of employment.

Bargaining Power

The relative ability of parties in a negotiation, such as employers and employees, to influence the outcome in their favor.

Going Out on Strike

The act of workers stopping work as a form of protest, typically to secure better wages, working conditions, or other employment terms.

Employer

An individual or organization that hires and pays employees for their labor or services.