The Murray Corporation Makes and Sells a Single Product

question 82

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 budget variance for May was:

• A)$2,400 U
• B)$2,400 F
• C)$6,000 U
• D)$6,000 F

---

Definitions:

Subcontracting Restrictions

Regulations or limitations placed on the ability of companies to outsource work to other firms, often to protect employees' jobs or ensure quality.

Outsourcing Restrictions

Policies or practices aimed at limiting the transfer of jobs or tasks to external contractors or locations, often to protect domestic employment.

Union Jobs

Positions of employment that are represented by a labor union, offering benefits such as collective bargaining rights and union protection.

Unionized Employers

Employers that have their workforce represented by a union for the purposes of collective bargaining and labor relations.