Oddo Corporation Makes a Product with the Following Standard Costs

question 96

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 materials quantity variance for December is:

• A)$1,540 U
• B)$1,496 F
• C)$1,540 F
• D)$1,496 U

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Definitions:

Organizational Creativity

The capacity of a company or organization to generate novel and useful ideas and solutions.

Harmony and Cohesion

The state of being unified or in agreement within a group, which fosters a positive and collaborative environment.

Climate for Creative Thinking

An environment or organizational culture that fosters innovation, open-mindedness, and the generation of new ideas.

Convergent Thinking

A cognitive process that involves focusing on finding a single, correct solution to a problem by applying logic and analytical skills.