Ortman Corporation Makes a Product with the Following Standard Costs

question 154

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 variable overhead rate variance for May is:

• A)$112 F
• B)$112 U
• C)$109 F
• D)$109 U

---

Definitions:

Negative Performance

Refers to outcomes or results of work that fail to meet expected standards, objectives, or goals, often impacting the organization or individual negatively.

Goal-setting Programs

Initiatives or strategies designed to establish objectives and plans to achieve them within a specified timeframe.

Planning Component

An essential part of the planning process that includes defining objectives, strategies, and actions to achieve goals.

Interim Reviews

Evaluations or assessments conducted at specific intervals during a project or process, before its completion.