Ortman Corporation Makes a Product with the Following Standard Costs

question 29

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 variable overhead rate variance for May is:

• A)$112 F
• B)$112 U
• C)$109 F
• D)$109 U

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Definitions:

Decision-making

The cognitive process of selecting a course of action from among multiple alternatives.

Low-context Culture

A culture in which communication is expected to be explicit, direct, and clear, with less reliance on context or non-verbal cues.

Decision Making

The process of selecting a course of action from several alternatives to achieve a desired outcome.

Problem Solving

The process of identifying a problem, developing possible solution paths, and taking the appropriate course of action.