Ortman Corporation Makes a Product with the Following Standard Costs

question 48

Multiple Choice

Ortman Corporation makes a product with the following standard costs: The company reported the following results concerning this product in May. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for May is:

• A)$1,200 U
• B)$1,200 F
• C)$1,215 F
• D)$1,215 U

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Definitions:

Computer Clocks

Internal timekeeping devices within computers that regulate the timing of all computer operations.

Production Cost

The total expense incurred in the manufacture of products, including raw materials, labor, and overhead costs.

Club Sponsor

An entity or individual that provides support, often financial, to a club, typically for marketing, funding events, or activities.

Junk Computer Parts

Non-functional or obsolete computer components marked for disposal or recycling.