The management of Vert Lawnmowers has calculated the following variances: $$\begin{array} { | l | r | }
\hline \text { Direct materials cost variance } & \$ 11,000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 36,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 17,000 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 14,000 \mathrm { U } \
\hline \text { Variable overhead cost variance } & 2,000 \mathrm {~F} \
\hline \text { Variable overhead efficiency variance } & 6,000 \mathrm {~F} \
\hline \text { Fixed overhead cost variance } & 3,500 \mathrm {~F} \
\hline
\end{array}$$ When determining the total production cost flexible budget variance,what is the total manufacturing overhead variance of the company?
A) $6,000 F
B) $8,000 F
C) $3,500 F
D) $11,500 F

Question

The management of Vert Lawnmowers has calculated the following variances: $$\begin{array} { | l | r | } 
\hline \text { Direct materials cost variance } & \$ 11,000 \mathrm { U } \
\hline \text { Direct materials efficiency variance } & 36,000 \mathrm {~F} \
\hline \text { Direct labor cost variance } & 17,000 \mathrm {~F} \
\hline \text { Direct labor efficiency variance } & 14,000 \mathrm { U } \
\hline \text { Variable overhead cost variance } & 2,000 \mathrm {~F} \
\hline \text { Variable overhead efficiency variance } & 6,000 \mathrm {~F} \
\hline \text { Fixed overhead cost variance } & 3,500 \mathrm {~F} \
\hline
\end{array}$$ When determining the total production cost flexible budget variance,what is the total manufacturing overhead variance of the company?
A) $6,000 F
B) $8,000 F
C) $3,500 F
D) $11,500 F

Quizplus · Accepted Answer

The total manufacturing overhead variance is the sum of the variable overhead cost variance, variable overhead efficiency variance, and fixed overhead cost variance: $2,000 F + $6,000 F + $3,500 F = $11,500 F.

The Management of Vert Lawnmowers Has Calculated the Following Variances