Masek Corporation Has a Standard Cost System in Which It

question 45

Multiple Choice

Masek Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) . The company has provided the following data for the most recent month: What was the fixed manufacturing overhead budget variance for the month?

• A)$2,360 Unfavorable
• B)$1,000 Unfavorable
• C)$2,360 Favorable
• D)$1,000 Favorable

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Definitions:

Futures Contract

A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Exchange Rate

The value of one currency for the purpose of conversion to another currency.

Francs

Francs refer to the currency that was used in several countries, including France, Switzerland, and Belgium, before the introduction of the euro in some of these countries.

Laspeyres Price Index

A measure of price changes that uses the quantities of goods and services purchased in a base period to calculate the index.