Ortman Corporation Makes a Product with the Following Standard Costs

question 53

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 labor rate variance for May is:

• A)$1, 008 F
• B)$981 U
• C)$981 F
• D)$1, 008 U

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Definitions:

Least Squares Regression

A statistical method used to estimate the coefficients of a regression model by minimizing the differences between observed and predicted values.

Predicted Value

The estimated value based on the predictor variable(s) in a regression analysis.

Regression Analysis

A statistical technique for modeling and analyzing the relationship between a dependent variable and one or more independent variables.

Sales

The process of exchanging goods or services for money; it involves quantifying the number of items sold and the revenue generated from such transactions.