Ortman Corporation Makes a Product with the Following Standard Costs

question 170

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

Comprehend the role and implications of paid-in capital in excess of par or stated value in equity transactions.

Appreciate the strategic reasons behind treasury stock transactions and their impact on shareholders' equity.

Understand the basic concepts of supply and demand in the market.

Comprehend the effects of price changes on supply and demand.

---

Definitions:

Marginal Cost

The increase in total cost that arises from producing one extra unit of a good or service.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are close substitutes, leading to price competition and efficiency.

Utility Functions

Represent mathematical models that quantify an individual's preference for certain bundles of goods or services under conditions of scarcity.

Public Good

An item or resource that cannot be withheld from anyone and whose consumption by one individual does not diminish its accessibility to others, characterized by being both non-excludable and non-rival.