The Management of Zeta Company Has Calculated the Following Variances

question 172

Multiple Choice

The management of Zeta Company has calculated the following variances: $$\begin{array} { | l | r | } \hline \text { Direct materials cost variance } & \$ 8,000 \mathrm { U } \\\hline \text { Direct materials efficiency variance } & 35,000 \mathrm {~F} \\\hline \text { Direct labor cost variance } & 15,000 \mathrm {~F} \\\hline \text { Direct labor efficiency variance } & 12,000 \mathrm { U } \\\hline \text { Total variable overhead variance } & 7,000 \mathrm {~F} \\\hline \text { Total fixed overhead variance } & 3,050 \mathrm {~F} \\\hline\end{array}$$ Calculate the total direct materials variance of Zeta Company.

• A) $3,000 F
• B) $27,000 F
• C) $10,050 F
• D) $7,000 F

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Definitions:

P-aminobenzoic Acid

A white crystalline substance that is a part of the vitamin B complex and is used in sunscreen products.

Structure

The arrangement or organization of something's parts or elements which defines its nature or function.

Aromatic

Organic compounds that contain one or more benzene rings or similar structures, characterized by a high degree of chemical stability and unique reactions.

Π Network

A system of conjugated pi bonds in a molecule, allowing delocalized electron movement across the structure, affecting its reactivity and properties.