Oddo Corporation Makes a Product with the Following Standard Costs

question 370

Multiple Choice

Oddo Corporation makes a product with the following standard costs: The company reported the following results concerning this product in December. 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 labor efficiency variance for December is:

• A)$4,026 F
• B)$4,026 U
• C)$4,400 F
• D)$4,400 U

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Definitions:

Debts And Obligations

Amounts of money or services owed to others that represent claims against a company or individual's assets.

Liabilities

Financial obligations or debts that a company owes to others, which can include loans, accounts payable, mortgages, deferred revenues, and bonds payable.

Dividends Declared

Earnings designated by the board of directors of a corporation to be shared among its stockholders.

Statement Of Changes In Equity

A financial statement that details the movements in equity accounts during a specific period, including share capital, reserves, and retained earnings.