The Murray Corporation Makes and Sells a Single Product

question 97

Multiple Choice

The Murray Corporation makes and sells a single product. The company recorded the following activity and cost data for May:

The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour.
-The fixed manufacturing overhead budget variance for May was:

• A)$2,400 U
• B)$2,400 F
• C)$6,000 U
• D)$6,000 F

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Definitions:

Bank

A financial institution licensed to receive deposits and provide loans, along with offering various other financial services.

Postage Expense

The cost incurred by a business for sending mail, packages, or parcels through the postal service or courier companies.

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses, managed through a system of vouchers to maintain control.

Depositor's Bank Account

An account maintained by an individual at a bank in which they can deposit or withdraw funds.