The management of Pamela's Pet Supplies has calculated the following variances: $$\begin{array} { | l | r | }
\hline \text { Direct materials cost variance } & \$ 8000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 40,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 16,500 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 12,500 \mathrm { U } \
\hline \text { Total variable overhead variance } & 8000 \mathrm {~F} \
\hline \text { Fixed overhead cost variance } & 3500 \mathrm {~F} \
\hline
\end{array}$$ When determining the total product cost flexible budget variance,what is the fixed overhead variance of the company?

Question

The management of Pamela's Pet Supplies has calculated the following variances: $$\begin{array} { | l | r | } 
\hline \text { Direct materials cost variance } & \$ 8000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 40,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 16,500 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 12,500 \mathrm { U } \
\hline \text { Total variable overhead variance } & 8000 \mathrm {~F} \
\hline \text { Fixed overhead cost variance } & 3500 \mathrm {~F} \
\hline
\end{array}$$ When determining the total product cost flexible budget variance,what is the fixed overhead variance of the company?

Quizplus · Accepted Answer

The fixed overhead cost variance is given as $3500 F in the table, which is the correct fixed overhead variance.

The Management of Pamela's Pet Supplies Has Calculated the Following