Ortman Corporation Makes a Product with the Following Standard Costs

question 94

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:

Physical/Acoustical Properties

relate to the characteristics of sound or sound waves, including frequency, amplitude, and velocity, which determine how sounds are produced, transmitted, and perceived.

Attention Hypothesis

is the theory suggesting that the focus and allocation of cognitive resources towards certain stimuli or tasks influence perception and information processing.

Automatization

the process through which tasks become automatic after extensive practice, requiring less cognitive effort.

Attentional Learning

The process by which learning occurs as a function of where and how an individual focuses their attention.