The Management of Cleancut Lawnmowers Has Calculated the Following Variances

question 113

Multiple Choice

The management of Cleancut Lawnmowers has calculated the following variances: $$\begin{array} { | l | r | } \hline \text { Direct materials cost variance } & \$ 8000 \mathrm { U } \\\hline \text { Direct materials efficiency variance } & 38,000 \mathrm {~F} \\\hline \text { Direct labor cost variance } & 17,000 \mathrm {~F} \\\hline \text { Direct labor efficiency variance } & 13,000 \mathrm { U } \\\hline \text { Variable overhead cost variance } & 3500 \mathrm {~F} \\\hline \text { Variable overhead efficiency variance } & 5000 \mathrm {~F} \\\hline \text { Fixed overhead cost variance } & 3000 \mathrm {~F} \\\hline\end{array}$$ When determining the total product cost flexible budget variance,what is the total manufacturing overhead variance of the company?

• A) $5000 F
• B) $8500 F
• C) $3000 F
• D) $11,500 F

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Definitions:

Prosperity Phase

A stage of the business cycle in which economic activity is growing, leading to higher levels of employment, income, and production.

Recession Phase

is a period of temporary economic decline during which trade and industrial activities are reduced, typically identified by a fall in GDP in two successive quarters.

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A stage in the economic cycle where activity begins to increase again after a period of recession or depression, marked by rises in employment, consumer spending, and production.

Business Cycle

The cyclic phenomenon of economic expansion and contraction experienced by an economy over time.