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 price variance for May is:
A)$1,264 F
B)$1,400 F
C)$1,264 U
D)$1,400 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 price variance for May is:
A)$1,264 F 
B)$1,400 F 
C)$1,264 U 
D)$1,400 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 price variance for May is:
A)$1,264 F 
B)$1,400 F 
C)$1,264 U 
D)$1,400 U

Ortman Corporation Makes a Product with the Following Standard Costs