The Management of Delta Company Has Calculated the Following Variances

question 58

Multiple Choice

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

• A) $3,050 F
• B) $12,000 U
• C) $8,000 U
• D) $10,050 F

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Definitions:

Business Strategies

Approaches and plans implemented by a business to achieve its goals and secure a competitive position in the market.

Organizational Strategies

Plans or approaches developed by businesses to achieve long-term goals and improve their position in the marketplace.