The Murray Corporation Uses a Standard Cost System in Which

question 38

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

---

Definitions:

Lease

A contract by which one party conveys land, property, services, or goods to another for a specified time, usually in return for a regular payment.

Consideration

The value (such as money, a promise, or a service) exchanged between parties in a contract, making the agreement legally binding.

Right to Possession

The legal authority to control or occupy a piece of property, either by ownership or by lease.

Transportation Costs

Expenses associated with moving goods or individuals from one location to another, including costs related to freight, fuel, and maintenance.