Ortman Corporation Makes a Product with the Following Standard Costs

question 63

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 materials price variance for May is:

• A)$1, 264 F
• B)$1, 400 F
• C)$1, 264 U
• D)$1, 400 U

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Definitions:

Price Controls

Government-imposed limits on the prices that can be charged for goods and services within a market.

Bait-and-Switch

A deceptive marketing practice where customers are lured by an advertisement for a low-priced item but then are persuaded to buy a more expensive item.

Higher-Priced Nest Thermostat

A more expensive version of the Nest Thermostat, suggesting advanced features or enhanced functionalities.

Hardware Store

A retail business specializing in selling tools, building materials, and home improvement products for repairs, renovations, and construction projects.