Oddo Corporation Makes a Product with the Following Standard Costs

question 45

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 variable overhead rate variance for December is:

• A)$316 F
• B)$294 F
• C)$316 U
• D)$294 U

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Definitions:

Carrying Value

The book value of an asset or liability on a balance sheet, representing the cost minus accumulated depreciation or amortization.

Investments in Bonds

Financial investments made by purchasing debt securities issued by corporations, governments, or other entities that pay interest over a specific period.

Time Value of Money

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Face Value

The original value of a financial instrument as stated on the instrument itself.