Ortman Corporation Makes a Product with the Following Standard Costs

question 118

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 efficiency variance for May is:

• A)$483 U
• B)$510 U
• C)$483 F
• D)$510 F

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Definitions:

Business Products

Goods and services that are purchased or leased for commercial use, direct use in producing other goods or services, or for resale.

Ancillary Products

Products or services that are supplementary to a main product or service, often enhancing the value or experience of the main offering.

Wholesale Goods

Goods sold in large quantities at reduced prices, typically to retailers who then sell them to the public.

Retail Products

Goods that are sold to the public through stores, online, or other channels, typically for personal or household use.