Oddo Corporation Makes a Product with the Following Standard Costs

question 78

Multiple Choice

Oddo Corporation makes a product with the following standard costs:

The company reported the following results concerning this product in December.

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 quantity variance for December is:

• A)$1,540 U
• B)$1,496 F
• C)$1,540 F
• D)$1,496 U

---

Definitions:

Decision Making

The process(es) by which an individual selects one course of action from among alternatives.

Problem Solving

The process of finding solutions to difficult or complex issues.

Deductive Reasoning

A process of logical reasoning from one or more statements (premises) to reach a logically certain conclusion.

Modus Ponens

A logical argument form and a rule of inference that, if a premise implies a conclusion and the premise is true, then the conclusion must also be true.