Oddo Corporation Makes a Product with the Following Standard Costs

question 134

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:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Price-taker Market

A market situation where buyers and sellers accept the prevailing market price as they individually have no influence over it.

Short-run Market Supply

The total quantity of a good that producers are willing and able to sell at a given price over a short period.

Marginal Cost Curves

graphical representations that show how the cost of producing one additional unit of a good or service varies with the quantity produced.