The management of Delta Company has calculated the following variances: $$\begin{array} { | l | r | }
\hline \text { Direct materials cost variance } & \$ 8,000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 35,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 15,000 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 12,000 \mathrm { U } \
\hline \text { Total variable overhead variance } & 7,000 \mathrm {~F} \
\hline \text { Total fixed overhead variance } & 3,050 \mathrm {~F} \
\hline
\end{array}$$ When determining the total production cost flexible budget variance, calculate the fixed overhead cost variance of Delta Company.
A) $3,050 F
B) $12,000 U
C) $8,000 U
D) $10,050 F

Question

The management of Delta Company has calculated the following variances: $$\begin{array} { | l | r | } 
\hline \text { Direct materials cost variance } & \$ 8,000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 35,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 15,000 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 12,000 \mathrm { U } \
\hline \text { Total variable overhead variance } & 7,000 \mathrm {~F} \
\hline \text { Total fixed overhead variance } & 3,050 \mathrm {~F} \
\hline
\end{array}$$ When determining the total production cost flexible budget variance, calculate the fixed overhead cost variance of Delta Company.
A) $3,050 F
B) $12,000 U
C) $8,000 U
D) $10,050 F

Quizplus · Accepted Answer

Fixed overhead cost variance is a component of total fixed overhead variance.

The Management of Delta Company Has Calculated the Following Variances