Ortman Corporation Makes a Product with the Following Standard Costs

question 407

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:

Retail Location

A physical space where consumer goods are sold directly to customers, crucial for a business's accessibility and sales performance.

Extreme-Value Retailers

Stores that specialize in offering a wide range of products at exceptionally low prices, often in a no-frills shopping environment.

Corner Store

A small retail outlet, often located on a street corner, offering a limited range of household goods and groceries.

Supercenter

A large retail establishment that combines a supermarket and a department store, offering a wide range of products under one roof.