The management of Alpha Company has calculated the following variances: $$\begin{array} { | l | r | }
\hline \text { Direct materials cost variance } & \$ 8,000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 35,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 15,000 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 12,000 \mathrm { U } \
\hline \text { Variable overhead cost variance } & 2,000 \mathrm {~F} \
\hline \text { Variable overhead efficiency variance } & 5,000 \mathrm {~F} \
\hline \text { Fixed overhead cost variance } & 3,050 \mathrm {~F} \
\hline
\end{array}$$
-When determining the total production cost flexible budget variance, calculate the total fixed overhead variance of Alpha Company.
A) $5,000 F
B) $3,050 F
C) $8,050 F
D) $7,000 F

Question

The management of Alpha Company has calculated the following variances: $$\begin{array} { | l | r | } 
\hline \text { Direct materials cost variance } & \$ 8,000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 35,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 15,000 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 12,000 \mathrm { U } \
\hline \text { Variable overhead cost variance } & 2,000 \mathrm {~F} \
\hline \text { Variable overhead efficiency variance } & 5,000 \mathrm {~F} \
\hline \text { Fixed overhead cost variance } & 3,050 \mathrm {~F} \
\hline
\end{array}$$ 
-When determining the total production cost flexible budget variance, calculate the total fixed overhead variance of Alpha Company.
A) $5,000 F
B) $3,050 F
C) $8,050 F
D) $7,000 F

Quizplus · Accepted Answer

The total fixed overhead variance is the fixed overhead cost variance, which is $3,050 F.

The Management of Alpha Company Has Calculated the Following Variances