The Murray Corporation Makes and Sells a Single Product

question 57

Multiple Choice

The Murray Corporation makes and sells a single product. The company recorded the following activity and cost data for May:

The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour.

-The fixed manufacturing overhead used to calculate the predetermined overhead rate was:

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

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where supply equals demand.

Demand

The desire of purchasers, consumers, clients, or agents for a particular commodity, service, or other resource, combined with their capacity to purchase it.

Vertical Straight Line

In a graph, a line that runs straight up and down, indicating that the variable on the x-axis remains constant.

Quantity Supplied

The quantity of a product or service that sellers are prepared and capable of offering for sale at a certain price.