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 rate variance for May is:
A)$112 F
B)$112 U
C)$109 F
D)$109 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 variable overhead rate variance for May is:
A)$112 F 
B)$112 U 
C)$109 F 
D)$109 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 variable overhead rate variance for May is:
A)$112 F 
B)$112 U 
C)$109 F 
D)$109 U

Ortman Corporation Makes a Product with the Following Standard Costs