A Department Has Budgeted Monthly Fixed Manufacturing Overhead Cost of $40,000

Multiple Choice

A department has budgeted monthly fixed manufacturing overhead cost of $40,000 plus $5 per direct labour hour.The flexible budget report reflects $120,000 for total budgeted manufacturing cost for the month.What is the budgeted level of activity to be achieved during the month?

A) 32,000 direct labour hours
B) 24,000 direct labour hours
C) 16,000 direct labour hours
D) cannot be determined