Ortman Corporation Makes a Product with the Following Standard Costs

question 303

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:

Goal Difficulty

This concept pertains to the extent of challenge and effort required to achieve a stated objective.

Goal Clarity

The extent to which the goals of a project or organization are understood and clear to all members involved.

Goal Consistency

Refers to the alignment and compatibility of individual or group objectives with the broader organizational goals.

Goal Agreement

A mutual understanding or arrangement between parties regarding the objectives to be achieved.