(Appendix 11A)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 amount of fixed manufacturing overhead cost applied to work in process during May was:
A)$61, 725
B)$62, 700
C)$42, 750
D)$64, 125

Question

(Appendix 11A)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 amount of fixed manufacturing overhead cost applied to work in process during May was:
A)$61, 725 
B)$62, 700 
C)$42, 750 
D)$64, 125

Quizplus · Accepted Answer

Fixed manufacturing overhead cost applied to work in process = $0.95 per DLH × 1.5 DLHs per unit × 45, 000 units = $64, 125

(Appendix 11A)The Murray Corporation Makes and Sells a Single Product