The management of Lawnshark Lawnmowers has calculated the following variances: $$\begin{array} { | l | r | }
\hline \text { Direct materials cost variance } & \$ 11,000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 37,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 15,000 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 13,000 \mathrm { U } \
\hline \text { Variable overhead cost variance } & 2000 \mathrm {~F} \
\hline \text { Variable overhead efficiency variance } & 6000 \mathrm {~F} \
\hline \text { Fixed overhead cost variance } & 4500 \mathrm {~F}\\hline
\end{array}$$ What is the total variable overhead variance of the company?

Question

The management of Lawnshark Lawnmowers has calculated the following variances: $$\begin{array} { | l | r | } 
\hline \text { Direct materials cost variance } & \$ 11,000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 37,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 15,000 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 13,000 \mathrm { U } \
\hline \text { Variable overhead cost variance } & 2000 \mathrm {~F} \
\hline \text { Variable overhead efficiency variance } & 6000 \mathrm {~F} \
\hline \text { Fixed overhead cost variance } & 4500 \mathrm {~F}\\hline 
\end{array}$$ What is the total variable overhead variance of the company?

Quizplus · Accepted Answer

The total variable overhead variance is the sum of the variable overhead cost variance and the variable overhead efficiency variance: $2000 F + $6000 F = $8000 F.

The Management of Lawnshark Lawnmowers Has Calculated the Following Variances