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:

Unit Value

A measurement or quantity used as a standard or fixed amount in calculations or transactions.

Multiply

To increase in number by a specific factor; in arithmetic, it is the operation of adding a number to itself a certain number of times.