Ortman Corporation Makes a Product with the Following Standard Costs

question 167

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 efficiency variance for May is:

• A)$27 F
• B)$27 U
• C)$30 U
• D)$30 F

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Definitions:

Hostility to Reason

A negative attitude or opposition towards logical argumentation, critical thinking, or the rational resolution of conflicts.

Critical Thinking

A skill of objectively assessing evidence and arguments, to identify biases and assumptions, and make reasoned judgments.

Qualitative Improvements

Enhancements or upgrades in the quality or nature of something rather than in its quantity or numerical aspects.

Critical Thinking Skills

The cognitive abilities used to analyze facts, generate and evaluate arguments, and synthesize information in order to arrive at well-founded conclusions.