Ortman Corporation Makes a Product with the Following Standard Costs

question 102

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 materials quantity variance for May is:

• A)$1,200 U
• B)$1,200 F
• C)$1,215 F
• D)$1,215 U

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Definitions:

Thyroid Gland

A butterfly-shaped gland located in the neck, responsible for producing hormones that regulate metabolism.

Mammary Glands

Glands located in the breasts of female mammals that produce milk to feed young offspring.

Prolactin

A hormone produced by the anterior pituitary gland that stimulates milk production after childbirth.

Thymus Gland

An immune system gland located in the upper chest, crucial for T-cell development during early life.