Oddo Corporation Makes a Product with the Following Standard Costs

question 114

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 rate variance for December is:

• A)$5,372 F
• B)$4,998 U
• C)$5,372 U
• D)$4,998 F

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion in a set of numerical data, indicating how spread out the data points are from the mean.

Souvenirs

Items purchased or acquired to serve as a reminder of a particular place, event, or experience, often during travels.

Future Sales

Anticipated or projected revenue from the sale of products or services in upcoming periods.

Margin Lost

The reduction in the potential profit margin due to factors such as discounts, errors, or inefficiencies.