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:

Online Reasoning Skills

The ability to critically evaluate information, identify credible sources, and make informed decisions in the digital environment.

Vertical Structure

An organizational structure where hierarchy and rank order define how communication, power, and responsibilities are distributed, typically in a top-down manner.

Horizontal Structure

An organizational structure with few or no levels of middle management between staff and executives, promoting greater team collaboration.

Classical Conditioning

A training method where two signals are consistently linked together; initially, the response is triggered by the second signal but over time, it is the first signal alone that provokes the reaction.