The management of Alpha Lawnmowers has calculated the following variances: $$\begin{array} { | l | r | }
\hline \text { Direct materials cost variance } & \$ 9,000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 36,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 16,000 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 13,000 \mathrm { U } \
\hline \text { Variable overhead cost variance } & 2,000 \mathrm {~F} \
\hline \text { Variable overhead efficiency variance } & 6,500 \mathrm {~F} \
\hline \text { Fixed overhead cost variance } & 4,000 \mathrm {~F} \
\hline
\end{array}$$ What is the total variable overhead variance of the company?
A) $4,500 F
B) $12,500 F
C) $8,500 F
D) $4,000 F

Question

The management of Alpha Lawnmowers has calculated the following variances: $$\begin{array} { | l | r | } 
\hline \text { Direct materials cost variance } & \$ 9,000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 36,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 16,000 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 13,000 \mathrm { U } \
\hline \text { Variable overhead cost variance } & 2,000 \mathrm {~F} \
\hline \text { Variable overhead efficiency variance } & 6,500 \mathrm {~F} \
\hline \text { Fixed overhead cost variance } & 4,000 \mathrm {~F} \
\hline
\end{array}$$ What is the total variable overhead variance of the company?
A) $4,500 F
B) $12,500 F
C) $8,500 F
D) $4,000 F

Quizplus · Accepted Answer

The total variable overhead variance is the sum of the variable overhead cost variance and the variable overhead efficiency variance, which is $2,000 F + $6,500 F = $8,500 F.

The Management of Alpha Lawnmowers Has Calculated the Following Variances