The management of Vert Lawnmowers has calculated the following variances
Direct materials cost variance $8,000 U
Direct materials efficiency variance 38,000 F
Direct labor cost variance 17,000 F
Direct labor efficiency variance 13,000 U
Variable overhead cost variance 3,500 F
Variable overhead efficiency variance 5,000 F
Fixed overhead cost variance 3,000 F
When determining the total production cost flexible budget variance, what is the total manufacturing overhead variance of the company?
A) $5,000 F
B) $8,500 F
C) $3,000 F
D) $11,500 F
D .D)
Variable overhead cost variance $3,500 F
Variable overhead efficiency variance 5,000 F
Total variable overhead variance 8,500 F
Add fixed overhead cost variance 3,000 F
Total manufacturing overhead variance $11,500 F
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