Mouton Corporation Manufactures and Sells a Single Product

question 281

Multiple Choice

Mouton Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,300 units, but its actual level of activity was 7,350 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:
Actual results for July:
-The activity variance for selling and administrative expenses in July would be closest to:

• A)$20 U
• B)$20 F
• C)$720 U
• D)$720 F

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Definitions:

Hepatocytes

Hepatocytes are the main functional cells of the liver, responsible for detoxification, protein synthesis, and production of biochemicals necessary for digestion.

Hemocytoblasts

Stem cells in the bone marrow that can differentiate into various types of blood cells.

Negative Feedback

An adjustment process in which an initiating signal triggers a response that counterbalances the original effect, ensuring stability of the regulated substance.

Blood Vessels

Hollow channels facilitating blood flow throughout the body, which include arteries, veins, and capillaries.