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

Question

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

Quizplus · Accepted Answer

The Answer of 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

Ortman Corporation Makes a Product with the Following Standard Costs