The Murray Corporation Uses a Standard Cost System in Which

question 102

Multiple Choice

The Murray Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours (DLHs) . The company recorded the following activity and cost data for May: The fixed manufacturing overhead budget variance for May was:

• A)$8,000 F
• B)$8,000 U
• C)$1,600 F
• D)$1,600 U

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Definitions:

Depreciable Rate

The rate at which an asset loses its value over time for accounting and tax purposes, determining its annual depreciation.

MACRS Rates

MACRS Rates refer to the depreciation rates established under the Modified Accelerated Cost Recovery System, allowing for faster depreciation of assets for tax purposes.

Property

Assets owned by an individual or business, which can include physical items like real estate and equipment, or intangible items like intellectual property.

MACRS

The Modified Accelerated Cost Recovery System, a method of depreciation used for tax purposes in the United States allowing faster depreciation.