Mouton Corporation Manufactures and Sells a Single Product

question 223

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 spending variance for manufacturing overhead in July would be closest to:

• A)$780 F
• B)$690 U
• C)$780 U
• D)$690 F

---

Definitions:

Theory Of Rent

A principle explaining how the price and allocation of land and its resources are determined based on their use, productivity, and locational advantages.

Efficiently Allocating

The process of distributing resources in a manner that maximizes the net benefits received from their use.

Long-term Investment

Assets that are held for an extended period, typically over one year, to generate growth, income, or capital gains, such as stocks or real estate.

Present Value

The existing value of a forthcoming sum of money or cash flow sequence, adjusted for a specific return rate.