The Total Variance Is $10,000 Favourable

question 59

Multiple Choice

The total variance is $10,000 favourable.The total materials variance is $4,000 favourable.The total labour variance is twice the total overhead variance, both which are favourable.What is the total overhead variance?

• A)$1,000
• B)$2,000
• C)$3,000
• D)$4,000

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Definitions:

Main Pressure Tap

A point within a fluid system designed for pressure monitoring or for connecting measurement devices.

ECPC Valve

Electronically Controlled Pressure Control valve, used in automatic transmissions to control the hydraulic pressure based on electronic signals.

Caterpillar CX

A series of transmission products manufactured by Caterpillar, specifically designed for heavy-duty applications.