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:

Trickle-up Theory

A theory suggesting that trends and innovations are initiated from the lower social classes and then adopted by the upper classes.

Trickle-down Theories

Theories suggesting that trends, behaviors, or innovations initiated by higher socioeconomic groups gradually spread to lower socioeconomic groups.

Trickle-down Theory

An economic hypothesis that argues benefits for the wealthy will "trickle down" to everyone else, improving the economy as a whole.

Reward-rejection

A psychological response where an individual rejects a reward, possibly due to feeling it is unearned or fearing its implications.