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:

Supplies

Materials and items used in the daily operations of a business that often have a short life span.

Salaries Payable

A liability account that represents the amount owed to employees for work done but not yet paid.

Fiscal Period

A specific time period used for accounting purposes and preparing financial statements, usually twelve months.

Accumulated Depreciation

The cumulative amount of depreciation cost recorded for an asset from the time it was first utilized.