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

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 efficiency variance for May is:
A)$27 F 
B)$27 U 
C)$30 U 
D)$30 F

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 efficiency variance for May is:
A)$27 F 
B)$27 U 
C)$30 U 
D)$30 F

Ortman Corporation Makes a Product with the Following Standard Costs